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Nokia Outlines New Strategy

Nokia Outlines New Strategy

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Published by: Aathi Narayanan on Dec 06, 2011
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05/04/2012

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Nokia outlines new strategy, introduces new leadership, operational structure Nokia Corporation Stock exchange release February

11, 2011 at 09.45 (CET+1) London, UK - Nokia today outlined its new strategic direction, including changes in leadership and operational structure to accelerate the company's speed of execution in a dynamic competitive environment. Major elements of the new strategy include: - Plans for a broad strategic partnership with Microsoft to build a new global mobile ecosystem; Windows Phone would serve as Nokia's primary smartphone platform. - A renewed approach to capture volume and value growth to connect "the next billion" to the Internet in developing growth markets - Focused investments in next-generation disruptive technologies - A new leadership team and organizational structure with a clear focus on speed, results and accountability "Nokia is at a critical juncture, where significant change is necessary and inevitable in our journey forward," said Stephen Elop, Nokia President and CEO. "Today, we are accelerating that change through a new path, aimed at regaining our smartphone leadership, reinforcing our mobile device platform and realizing our investments in the future." Nokia plans to form a strategic partnership with Microsoft to build a global mobile ecosystem based on highly complementary assets. The Nokia-Microsoft ecosystem targets to deliver differentiated and innovative products and have unrivalled scale, product breadth, geographical reach, and brand identity. With Windows Phone as its primary smartphone platform, Nokia would help drive the future of the platform by leveraging its expertise on hardware optimization, software customization, language support and scale. Nokia and Microsoft would also combine services assets to drive innovation. Nokia Maps, for example, would be at the heart of key Microsoft assets like Bing and AdCenter, and Nokia's application and content store would be integrated into Microsoft Marketplace. Under the proposed partnership, Microsoft would provide developer tools, making it easier for application developers to leverage Nokia's global scale. With Nokia's planned move to Windows Phone as its primary smartphone platform, Symbian becomes a franchise platform, leveraging previous investments to harvest additional value. This strategy recognizes the opportunity to retain and transition the installed base of 200 million Symbian owners. Nokia expects to sell approximately 150 million more Symbian devices in the years to come. Under the new strategy, MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-related product later this year. In feature phones, Nokia unveiled a renewed strategy to leverage its innovation and strength in growth markets to connect the next billion people to their first Internet and application experience.

NAVTEQ. speed and accountability. Tero Ojanpera will lead the Services and Developer Experience unit in an acting capacity. Mobile Phones will drive Nokia's "web for the next billion" strategy. placing a heavy focus on results. Juha Akras. New company structure As of April 1. The Mobile Phones unit will be led by Mary McDowell.Symbian Smartphones .Strategic Business Operations To support the planned new partnership with Microsoft. developer offering. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience. Effective today. Jerri DeVard.New leadership team. which features two distinct business units: Smart Devices and Mobile Phones. sourcing. Esko Aho. Colin Giles. The renewed governance will expedite decision-making and improve time-to-market of products and innovations. previously the Group Executive Board. will be headed by Larry Kaplan. effective February 10 to pursue other interests outside the company. Jo Harlow. operational structure This new strategy is supported by significant changes in Nokia's leadership. Nokia will have a new company structure. Tero Ojanpera. Smart Devices will be responsible for building Nokia's leadership in smartphones and will be led by Jo Harlow. Alberto Torres has stepped down from the management team. executing compelling marketing and communications. competencies and innovative thinking needed in today's dynamic environment. Timo Ihamuotila. Rich Green. product management and product marketing. Smart Devices will be responsible for creating a winning Windows Phone portfolio. customer care. Louise Pentland and Niklas Savander. Nokia has a new leadership team with the commitment. Services and Developer Experience will be responsible for Nokia's global services portfolio. They will focus on Nokia's key business areas: highend smartphones and mass-market mobile phones. The following sub-units now in Mobile Solutions will move under Smart Devices: . including product development. . Kai Oistamo. and continue as a separate reporting entity. The Nokia Leadership Team. Markets will be responsible for selling products. Mobile Phones will leverage its innovation and strength in growth markets to connect the next billion people and bring them affordable access to the Internet and applications. Mary McDowell. creating a competitive local ecosystem.MeeGo Computers . The new strategy and operational structure are expected to have significant impact to Nokia operations and personnel. operational structure and approach. developer relations and integration of partner service offerings. It will be headed by Niklas Savander. manufacturing. IT and logistics across all Nokia products. an integral part of Nokia's location and advertising business. will consist of the following members: Stephen Elop.

D) our ability to develop. The CFO Office. responsible for driving implementation of Nokia's ecosystem strategy and strategic partnerships. will be headed by Timo Ihamuotila. Because they . Corporate Relations & Responsibility." "will" or similar expressions. It will be headed by Rich Green. apps. Every day. products and services and their combinations.com). Human Resources will be led by Juha Akras. including the expected plans and benefits of such partnership. including." "designed. we are committed to connecting people." "expect.The CTO Office will be responsible for Nokia's technology strategy and forward-looking technology activities. will be led by Esko Aho. and J) statements preceded by "believe. without limitation." "foresee. Today. those regarding: A) the intention to form a strategic partnership with Microsoft to combine complementary assets and expertise to form a global mobile ecosystem and to adopt Windows Phone as our primary smartphone platform.from mobile phones to advanced smartphones and high-performance mobile computers. G) expectations and targets regarding our operational priorities and results of operations. sustainable development and social responsibility. I) expectations regarding the successful completion of acquisitions or restructurings on a timely basis and our ability to achieve the financial and operational targets set in connection with any such acquisition or restructuring. About Nokia At Nokia. market share. responsible for Nokia's government and public affairs. Corporate Development. Nokia Siemens Networks continues in the Nokia Group as a separate reporting entity. including Nokia Research Center. email and more. H) the outcome of pending and threatened litigation. more than 1. We combine advanced technology with personalized services that enable people to stay close to what matters to them. will be headed by Kai Oistamo. Nokia's NAVTEQ is a leader in comprehensive digital mapping and navigation services. net sales and margins of products and services. while Nokia Siemens Networks provides equipment." "anticipate. Design." "plans. including music. FORWARD-LOOKING STATEMENTS It should be noted that certain statements herein which are not historical facts are forwardlooking statements. services and solutions for communications networks globally. Please visit www. Nokia is integrating its devices with innovative services through Ovi (www.3 billion people connect to one another with a Nokia device ." "target." "estimate. responsible for all financial activity. Legal and Intellectual Property will be led by Louise Pentland.ovi.nokia. including expected operational and financial benefits and targets as well as changes in leadership and operation structure. These statements are based on management's best assumptions and beliefs in light of the information currently available to it. implement and commercialize new technologies. F) expectations and targets regarding our industry volumes. responsible for Nokia product and user experience design. maps. prices. will be led by Marko Ahtisaari.com/press for press materials. E) expectations regarding market developments and structural changes. C) the timing of the deliveries of our products and services and their combinations. B) the timing and expected benefits of our new strategy.

future events or otherwise. way of working and culture sufficiently to work effectively and efficiently with Microsoft in order to realize the stated benefits of the partnership in a timely manner. 7) our ability to change our business model. 2009 under Item 3D. content providers and other partners impairing our ability to build a sufficiently competitive ecosystem for our smartphones. whether as a result of new information. "Risk Factors. attention and resources of our senior management and others within the company potentially diverting their attention from other aspects of our business. except to the extent legally required. and on terms beneficial to us. Nokia does not undertake any obligation to publicly update or revise forwardlooking statements. or at all. actual results may differ materially from the results that we currently expect. . 3) the negotiation and implementation of the Microsoft partnership will require significant time.involve risks and uncertainties. or at all. 5) the Microsoft Windows Phone smartphone platform may not be preferred by application developers. or at all." Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. 2) our ability to continue to innovate and maintain the vibrancy of our Symbian-based smartphones during the negotiation of the Microsoft partnership and thereafter. we may forego more competitive alternatives achieving greater acceptance and profitability in the smartphone market. 4) in choosing to negotiate a partnership with Microsoft and utilize Windows Phone as our primary smartphone platform. but are not limited to: 1) whether definitive agreements can be entered into with Microsoft for the potential partnership in a timely manner. Factors that could cause these differences include. 6) the Microsoft partnership may not achieve the stated goal of producing smartphones which are differentiated from those of our competitors and preferred by our customers and consumers in the expected timeframe. as well as the risk factors specified on pages 11-32 of Nokia's annual report Form 20-F for the year ended December 31. 9) the implementation of the Microsoft partnership and the new operational structure may cause disruption and dissatisfaction among employees potentially reducing focus and productivity in some or all areas of our business. 8) our ability to effectively and smoothly implement our new leadership and operational structure and to realize the anticipated benefits in a timely manner.

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