Company sees 2005 as big year for music in mobile devices and operator customization
Cannes, France - At the 3GSM World Congress in Cannes, Nokia cites mobile music, operator customization and further growth in 3G as three main drivers for the industry in 2005. The company's top management also demonstrates the overriding importance of mobility as a global technology and lifestyle influence.
A blurring of industry boundaries is bringing new mobile devices, services and ways of using mobile devices both socially and professionally. This is already clear from the phenomenal success of camera phones as well as the growing use of smartphones for computer-like applications such as, email, web browsing and music downloading. After exceeding 20 million units in 2004, Nokia expects the global smartphone market to exceed 50 million units in 2005.
Music the next big thing in mobile multimedia
"Music is the next big thing in mobile multimedia, says Anssi Vanjoki, Executive Vice President and General Manager, Multimedia, "and we see 2005 as the year when music really goes mobile. Already in 2004, we sold 10 million phones with integrated music players. This year, more than half of our new Nokia phone models are expected to have music functionality."
In order to bring the best mobile music experience possible to consumers, Nokia and Loudeye Corp. together announced the industry's most comprehensive mobile music solution for operators. Nokia also announced an unparalleled collaboration with Microsoft, which will make it easier for consumers to enjoy their digital music whenever and wherever they want, without having to worry about digital file formats.
Widespread commercialization of 3G/WCDMA in 2005
"We expect to see the widespread commercialization of 3G/WCDMA networks during the year," says Simon Beresford-Wylie, Executive Vice President & General Manager, Networks, "with more than 100 3G networks opened by the end of 2005. Nokia is also projecting a sharp rise in 3G subscribers, to 70 million by the end of 2005, up from 16 million last year."
Driving 3G uptake globally, Nokia today launches its Nokia 6680 3G smartphone, with instant communications such as video sharing, XpressPrint(TM) and always-on email. With increasing demand for new-generation devices and services and more and more users in growth markets gaining access to mobile communications, Nokia estimates the total global mobile subscriber base to reach two billion by the end of 2005 and hit three billion subscriptions by 2010.
The Nokia 6101: expanding nokia's commitment to operator customization
Nokia also presents customer commitment as a top agenda item at Cannes by focusing on another strong industry trend, the role of customization in mobile devices. On top of an existing range of options, the Nokia 6101 clamshell camera phone, introduced at the event, presents operators with an extended range of software customization options, including operator icons and menus, operator-branded graphics and tones, and branded access to operator services. Equally important, the Nokia 6101 is the company's first mobile phone to offer hardware design customization for key operators, which includes exclusive colors, logos, industrial design alterations and product numbers.
"Customization in our mobile infrastructure and mobile devices businesses is an important element in Nokia's commitment to greater customer satisfaction," says Olli-Pekka Kallasvuo, Executive Vice President and General Manager, Mobile Phones. "Of the mobile devices we plan to announce in 2005, approximately 90% will offer a range of customization options."
About Nokia
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. www.nokia.com
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'',"target" 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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