Helsinki, Finland - Details of five new mobile devices, a software roadmap overview, new mobile infrastructure equipment and updated 2004 volume projections all featured among the breaking news at the annual Nokia Connection conference today.
Chairman and CEO Jorma Ollila introduced the new products, noting that the five new mobile devices would result in a stronger and more competitive product range. With the new products including three clamshell phones and the world's smallest 3G GSM/WCDMA phone, Ollila commented that, "We have now sharpened our product portfolio in key areas, bringing to the market new phones in the mid-range, and adding more clamshells to our offering."
Nokia's software plans were also outlined, as Nokia announced the second edition of the industry-leading Series 60 platform. The new edition focuses on applications tailored for business, and superior performance in different types of networks. Noting the ability of both Series 40 and Series 60 to support the customization and differentiation of operator services, Ollila drew attention to Nokia's cooperation with operator customers to date, and reaffirmed Nokia's resolve to respond to changing customer and market needs by strengthening its efforts in these areas.
Nokia also updated its mobile device volume estimate for 2004. Matti Alahuhta, Executive Vice President, stated that, "For 2004, Nokia sees the global mobile device market volume reaching approximately 600 million units, of which about one-third will be camera phones."
Clearly the industry is thriving. Throughout 2004, around 800,000 new subscribers have joined the mobile world every day. Alahuhta added, "as a result of fast growth in the number of new subscribers, we now expect the mobile subscription base to reach two billion in 2007, one year earlier than our previous forecast." Nokia also revised its previous first quarter global mobile device market volume estimate to 141 million units. Nokia's first quarter sales were 44.7 million units, representing market share of close to 32%.
Globally, there are now almost six million 3G WCDMA subscribers, and Nokia anticipates that 2004 will be a pivotal year for 3G WCDMA. Indeed, it is estimated that over 60 commercial 3G WCDMA networks will be in service by the end of the year. The company's aim to fulfill the promise of 3G was demonstrated by the launch of the Nokia 6630 mobile device, bringing 3G to the mass market, and the new Nokia MetroSite50 base station for rapid, cost-effective 3G WCDMA deployment and expansion.
Nokia reiterated its earlier-stated expectation for slight growth in the overall network infrastructure market in 2004. Sari Baldauf, Executive Vice President and General Manager, Networks, highlighted Western Europe's leading role in the deployment of 3G WCDMA: "During the first five months of 2004, we have seen the commercial launch of 20 3G WCDMA networks in Europe, which is very encouraging." Taking a global view, Ms Baldauf also highlighted Nokia's strong legacy and continuing focus on the USA, highlighting the company's roadmap for HSDPA and the smooth upgrade path it offers operators. Nokia also stressed the strength of its position in 3G WCDMA, having supplied 15 of the 33 commercially deployed networks to date, with 43 operator 3G WCDMA references in all.
About Nokia
Nokia is the world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia is dedicated to enhancing people's lives and productivity by providing easy-to-use and secure products like mobile phones, and solutions for imaging, games, media, mobile network operators and businesses. Nokia is a broadly held company with listings on five major exchanges.
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product and solution launches and deliveries; B) our ability to develop, implement and commercialize new products, solutions and technologies; C) expectations regarding market growth, developments and structural changes; D) expectations and targets for our results of operations; E) the outcome of pending and threatened litigation; and F) statements preceded by ''believe,'' ''expect,'' ''anticipate,'' ''foresee'' or similar expressions are forward-looking statements. Because these statements involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) developments in the mobile communications industry and the broader mobility industry, including the development of the mobile software and services market, as well as industry consolidation and other structural changes; 2) timing and success of the introduction and roll out of new products and solutions; 3) demand for and market acceptance of our products and solutions; 4) the impact of changes in technology and the success of our product and solution development; 5) the intensity of competition in the mobility industry and changes in the competitive landscape; 6) our ability to control the variety of factors affecting our ability to reach our targets and give accurate forecasts; 7) pricing pressures; 8) the availability of new products and services by network operators and other market participants; 9) general economic conditions globally and in our most important markets; 10) our success in maintaining efficient manufacturing and logistics as well as the high quality of our products and solutions; 11) inventory management risks resulting from shifts in market demand; 12) our ability to source quality components without interruption and at acceptable prices; 13) our success in collaboration arrangements relating to technologies, software or new products and solutions; 14) the success, financial condition, and performance of our collaboration partners, suppliers and customers; 15) any disruption to information technology systems and networks that our operations rely on; 16) our ability to have access to the complex technology involving patents and other intellectual property rights included in our products and solutions at commercially acceptable terms and without infringing any protected intellectual property rights; 17) developments under large, multi-year contracts or in relation to major customers; 18) the management of our customer financing exposure; 19) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the UK pound sterling and the Japanese yen; 20) our ability to recruit, retain and develop appropriately skilled employees; 21) our ability to implement our new organizational structure; and 22) the impact of changes in government policies, laws or regulations; as well as 23) the risk factors specified on pages 12 to 21 of the company's Form 20-F for the year ended December 31, 2003 under "Item 3.D Risk Factors."
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