Nokia outlines strategy and future

Nokia outlines strategy and future

Always interesting to learn from major vendors what they think of the future and how they adapt their own strategy. At the annual Nokia Capital Market Days, Nokia presented its market expectations and set out its targets for the next one to two years. The mobile handset market should grow 10% next year to 860m units, and mobile subscriptions should reach 3bn in 2008, two years in advance on the previous forecast. The mobile infrastructure market should grow moderately in 2006. Nokia maintained its target of 17%- 18% in handset operating margin, while operating margin in infrastructure business should decline to 13% (from previous 14%). Nokia plans to reduce its overall R&D expenditures to 9%-10% of sales, of which 8% in handset R&D and 14% in infrastructure R&D. In spite of this, Nokia will continue to focus on customer needs, plans to broaden its 3G product portfolio, develop applications for music, imaging and business, and increase the range of choice for consumers. Nokia acknowledges market consolidation around a few key players, and adds "The winners will be the ones that can master this complexity and offer appealing products to a broad range of customers. On both these counts, we believe Nokia has the elements key to success." .