[Motorola revises employee compensation and benefit programs and co-CEOs voluntarily reduce 2009 base compensation by 25 percent.]
Schaumburg, IL — Motorola, Inc. today announced additional actions to further reduce costs amid continuing global economic challenges. These measures include changes to employee compensation and benefit programs as well as changes to executive compensation.
As part of the overall cost reduction program, Motorola is revising its employee compensation and benefit programs across the company. Effective March 1, 2009, to better align with industry norms, Motorola will permanently freeze its U.S. pension plans, preserving vested benefits accrued by employees and retirees but eliminating future benefit accruals. Motorola intends to continue to provide funding to meet its pension obligations to present and future retirees.
Effective January 1, 2009, Motorola also will temporarily suspend all company matching contributions to the Motorola 401(k) Plan. U.S. employees may continue to contribute to the 401(k) plan but will not receive matching contributions from Motorola.
The company also announced today that employees in many of the markets in which it operates will not receive a salary increase in 2009. In addition, Motorola co-chief executive officers, Greg Brown and Sanjay Jha will voluntarily take a 25 percent decrease in base salary in 2009.
Greg Brown will voluntarily forgo any 2008 cash bonus earned under the Motorola incentive plan. Sanjay Jha’s employment contract provides for a guaranteed cash bonus for 2008. His bonus will also be voluntarily reduced by an amount equal to Greg Brown’s forfeited bonus and the remainder will be taken in the form of restricted stock units.
These actions are expected to lead to cost savings in addition to the $800 million that was previously announced on October 30, 2008.
“The sustained downturn in the global economy requires that we take these difficult but necessary steps,” said Greg Brown and Sanjay Jha, co-chief executive officers of Motorola. “While serving our customers remains a top priority, we are equally focused on our cost structure, and we will continue to implement appropriate measures to conserve cash and reduce expenses.” 20a1
[Forbes offers ideas on how to reduce cellphone bill costs noting that more than 20% of in-plan, or paid peak, minutes go unused every month]
By Tom Pepe (Forbes) — “Wireless services have become so essential to everyday life that even the recession hasn’t forced most consumers and businesses to give them up.”
[AdMob reports the iPhone has the greatest WiFi usage, with 42 percent of US requests coming in over WiFi instead of a mobile operator network.]
San Mateo, CA and London — AdMob, the world’s largest mobile advertising marketplace, today highlighted growing WiFi usage in the US and the UK in its November 2008 Mobile Metrics Report. Worldwide iPhone requests grew 52 percent month over month to 359 million in November, giving the iPhone 6.3 percent of total requests. In the US the iPhone is now the #1 device with 9.9 percent of requests.
The iPhone has by far the most WiFi usage, with 42 percent of US requests coming in over WiFi instead of a mobile operator network. The inclusion of WiFi on popular new smartphones such as the G1 and BlackBerry Bold indicates WiFi usage will continue to grow in the coming months. WiFi only devices such as the iPod Touch and Sony PlayStation Portable also generated significant traffic.
Other highlights from the November 2008 report:
* In the US, 8 percent of total requests in November were on WiFi networks, up from 3 percent in August. 42 percent of iPhone requests are made from WiFi, notably higher than most other WiFi capable phones which average between 10-20 percent. iPhone WiFi usage is generally higher on iPhone specific sites and applications than on normal mobile sites.
* In the UK, 8 percent of requests in November were on WiFi networks, up from 4 percent in August. After the iPhone and iPod Touch, the Nokia N95 and other N series phones are the leading WiFi devices.
* Worldwide requests were flat in November at 5.8 billion. Requests from North America, Western Europe, Latin America, and Eastern Europe each increased more than 10 percent month over month. These increases were offset by a decline in Indonesian inventory.
* The G1 (HTC Dream) generated 15 million requests in November and already represents 7 percent of all T-Mobile traffic. Android had a 2 percent share of smartphone operating system traffic in the US.
The full November 2008 report with additional data and all previous reports are available for free download at: http://www.admob.com/metrics.
AdMob stores and analyzes handset and operator data from every ad request in its network to optimize ad serving. Each month, the Mobile Metrics Report aggregates this data to provide insights into major trends in the mobile ecosystem. 209d
[The BlackBerry Curve 8350i features iDEN technology, built-in WiFi support, integrated GPS, 2 MP camera, advanced media player, Bluetooth plus the latest PTT features.]
Overland Park, Kan and Waterloo, Ontario — Responding to the requests of Nextel Direct Connect customers, Sprint today launched the BlackBerry® Curve(TM) 8350i smartphone. Developed by Research In Motion (RIM), the new BlackBerry Curve 8350i is the most advanced push-to-talk BlackBerry smartphone ever.
The BlackBerry Curve 8350i smartphone utilizes iDEN technology on the Nextel National Network. It offers Nextel Direct Connect, the only national push-to-talk service in the industry to offer sub-second call set up to the world’s largest push-to-talk community with millions of users.
The BlackBerry Curve 8350i is the first push-to-talk BlackBerry smartphone to offer:
- Built-in Wi-Fi® support, allowing customers to browse the Internet and download email attachments quickly and easily wherever they have Wi-Fi access, and they can also send and receive emails or browse the Internet while talking on the phone.
- Group Connect, enabling customers to instantly set up group conversations with up to 20 participants.
Additionally, the BlackBerry Curve 8350i smartphone supports:
- Integrated business solutions, including a large selection of GPS-enabled solutions and access to thousands of other third-party mobile applications for jobs such as dispatch operations and fleet and workforce management.
- International Direct Connect, which enables instant connections between the United States, Canada, Mexico, Argentina, Brazil, Chile and Peru.
- Talkgroup, which connects groups of up to 200 people at once within the same local market and in the same fleet.
“Because of its unique combination of push-to-talk capabilities and several other advanced features, the BlackBerry Curve 8350i smartphone is likely to appeal to both individual consumers and business customers,” said David Chamberlain, principal analyst with analyst firm In-Stat. “The BlackBerry Curve 8350i smartphone can also address the needs of several industries such as construction, field services, transportation and manufacturing.”
“The BlackBerry Curve 8350i smartphone is the most recent example of our solid commitment to iDEN technology and our Nextel Direct Connect customers,” said Danny Bowman, president of Nextel Direct Connect. “The BlackBerry Curve 8350i smartphone is designed for customers who require instant convenient push-to-talk services to communicate with friends and family as well as with employees, customers and suppliers. The BlackBerry Curve 8350i is a premium smartphone that strikes a perfect balance between performance and usability.”
The BlackBerry Curve 8350i smartphone is slim with a sleek black exterior, a full QWERTY keyboard, a convenient trackball with intuitive navigation and an internal antenna for a smooth, clean design. Other key features include:
- BlackBerry Device Software v4.6 for a simple and easy user experience with an updated interface, new shortcuts, an enhanced HTML web browser, support for free/busy calendar lookups and more.
- BlackBerry “push” email for easy and efficient delivery of corporate and personal email.
- Robust messaging capabilities with support for popular instant messaging, multimedia messaging (MMS) and text messaging services.
- Integrated GPS for step-by-step directions, navigation and local search as well as support for other location-based applications and services.
- Advanced media player for listening to music, watching videos and viewing pictures.
- 2 megapixel digital camera with digital zoom, flash and video recording(i).
- DataViz® Documents To Go® preinstalled for editing Microsoft® Word, Excel and PowerPoint files directly on the smartphone.
- Speakerphone that provides exceptional sound quality.
- Expandable memory of up to 16GB through its microSD/SDHC memory card slot, providing plenty of storage for pictures, videos, music and documents.
- Bluetooth® 2.0 support for hands-free use with headsets, car kits, stereo headsets and other Bluetooth peripherals.
- Support for thousands of applications, including business, lifestyle and entertainment titles.
- Stereo headset jack for calls, push-to-talk conversations, music and other audio.
- Removable/rechargeable 1400 mAH battery.
“The BlackBerry Curve 8350i smartphone is ideal for customers who want the benefit of the popular Nextel Direct Connect service together with the power of the BlackBerry platform,” said Mark Guibert, vice president of corporate marketing at RIM. “We think Nextel Direct Connect customers will be very pleased with its range of new features and stylish design, and we are very excited to be launching the BlackBerry Curve 8350i smartphone today with Sprint.”
The BlackBerry Curve 8350i smartphone is available beginning today at www.sprint.com or 1-800-SPRINT-1 or from a Sprint business sales representative. It is available for as low as $149.99 with a two-year service agreement, an $80 instant savings credit and a $100 mail-in rebate. On January 11, it will be available in Sprint retail stores nationwide.
The BlackBerry Curve 8350i smartphone measures 4.4″ x 2.4″ x .7″ and weighs 4.7 ounces. For more information about the BlackBerry Curve 8350i smartphone, visit: www.sprint.com. For more information about Nextel Direct Connect, visit www.sprint.com/nextel.
(i) Video recording requires a microSD card, sold separately. 209f
[Fourteen mobile phone and chip makers joined the Open Handset Alliance supporting the Android mobile device platform including Ericsson, Sony Ericsson, ARM and Vodafone.]
London, Cambridge — The Open Handset Alliance, a group of technology and mobile players, is pleased to announce the membership of 14 additional companies. By joining the founding members of the Open Handset Alliance, the following companies demonstrate their support for Android as an open mobile platform and their commitment to its commercial success. The new members are: AKM Semiconductor Inc., ARM, ASUSTek Computer Inc., Atheros Communications, Borqs, Ericsson, Garmin International Inc., Huawei Technologies, Omron Software Co. Ltd, Softbank Mobile Corporation, Sony Ericsson, Teleca AB, Toshiba Corporation and Vodafone.
New members will either deploy compatible Android devices, contribute significant code to the Android Open Source Project, or support the ecosystem through products and services that will accelerate the availability of Android-based devices. With these commitments, the Open Handset Alliance will continue to drive greater and faster innovation for the benefit of mobile users and everyone in the industry.
Open Handset Alliance members’ continued contributions to Android give everyone in the mobile ecosystem a free and complete mobile platform to build Android devices. The new members will add to the momentum of Android device availability, providing developers with an even greater opportunity to deploy compelling applications that will reach a global audience. As a result, consumers around the world benefit from a superior mobile experience that features less expensive devices, more compelling services, rich Internet applications, and easier-to-use interfaces.
SUPPORTING QUOTES
AKM is very pleased to provide comprehensive navigational aid technology to Android. AKM’s hardware and software solution ensures that mobile navigation aids perform at a very high level of usability, thus enriching the overall user experience with mobile phone-based navigation applications. — Larry Gaddy, Marketing Manager, AKM Semiconductor
ARM is very pleased to join the Open Handset Alliance and to contribute ARM’s OpenMax DL libraries and insight on the ARM architecture to the Android Open Source Project. Android is an excellent platform to enable Web 2.0 services on mobile devices, and demonstrates the innovation that ARM is seeing around mobile devices. — Ian Drew, Vice President of Marketing, ARM
ASUS is a leading handset manufacturer that will soon deliver high quality, innovative Android devices and technology for world class carriers and consumers. — HC Hung, General Manager of Personal Mobile Device, BU, ASUSTek Computer Inc.
Atheros embraces the Open Handset Alliance’s vision of creating a rich mobile user experience through the numerous benefits of open source development. We are pleased to bring our connectivity and wireless systems design expertise to the Alliance, confident that Atheros’ contributions to Android will help advance the development of mobile innovations through connected experiences. — Amir Faintuch, Vice President and General Manager, Mobile Business Unit, Atheros Communications
We are excited to be part of the Open Handset Alliance. Borqs has been working with members of the Alliance since July, 2007. Together, we have made significant progress designing Android based handsets with multiple handset partners for China and other markets around the world. Borqs is on track to launch multiple Android based handsets with our OEM partners in the first half of next year. We look forward to working with other Open Handset Alliance members to deploy Android based products and services worldwide. — Pat Chan, CEO, Borqs
Ericsson Mobile Platforms will support Android on selected platforms, both with external application processors and with integrated solutions. Such support will include necessary kernel code, drivers and modem interface code in the Android Open Source Project, and will be available from mid-2009 onwards. — Robert Puskaric, Head of Ericsson Mobile Platforms.
We are happy to join the Open Handset Alliance. By participating in the Open Handset Alliance and adopting the Android platform, Huawei enhances its handset strategy for worldwide markets. This enables Huawei’s portfolio of Android terminals for our customers, and Huawei is committed to deploy Android devices toward 2009. We believe the Android platform will provide an innovative edge in end user satisfaction — Li Jilin, Vice President, Huawei Communications
Omron Software is pleased to join the Open Handset Alliance. Omron believes that Android will enable more users to receive the benefit of living in a connected society. We are supporting the Android platform and hope our contributions to the Android Open Source Project will further enrich communication between people all over the world. — Hirofumi Fukumoto,General Manager, Mobile Solutions Business Division, Product Development Department, Omron Software
SoftBank Mobile is proud to be a member of Open Hanset Alliance. We firmly believe that the more wide use of open mobile platforms that the Alliance promotes will bring technological innovations in the industry. This will surely be enormous advantage for our users. –Masanobu Yoshida, Senior Vice President, product and service division of Softbank Mobile Corporation
Sony Ericsson is excited to announce its membership of the Open Handset Alliance and confirm its intention to develop a handset based on the Android platform We believe Sony Ericsson can bring a wealth of experience in making consumer focused multimedia handsets with new user experience to the Alliance drawing on the successes of the Walkman and Cyber-shot sub-brands. Sony Ericsson is a strong supporter of open operating systems and we believe the Open Handset Alliance offers an exciting opportunity for a new and unique user experience only Sony Ericsson can deliver. — Rikko Sakaguchi, CVP and head of Creation and Development, Sony Ericsson
We are the market leaders in providing innovative services and solutions to the major companies in the mobile communications industry. We want to use our expertise to help companies build products on the Android platform. We will contribute our code and solutions to the Android Open Source Project to benefit the community. We have great experience in providing similar value in both Linux and Java. Working with Teleca will enable our customers to benefit from faster time-to-market and significant cost savings. — Edwin Moses, Senior Vice President and Head of Customer & Market Organization, Teleca.
Joining the Open Handset Alliance today is a logical step in our mobile internet journey. Working with emerging terminal platforms for smartphones is critical for us to deliver unbeatable customer experiences and accelerate time to market for innovative products and services. — Frank H Rovekamp, Global Chief Marketing Officer, Vodafone Group. 20ac
[Sprint announces a next-generation open software platform, initially deploying with the Sprint TitanTM platform for Sprint Windows Mobile devices.]
Overland Park, Kan. — In the application developer community, 7.1 million JavaTM developers are creating desktop applications, but only around 3.6 million developers are creating mobile applications.* Sprint is changing that today by announcing a next-generation open software platform, initially deploying with the Sprint TitanTM platform for Sprint Windows Mobile devices. The open software platform will reach the larger audience of developers by enabling them to use the same codes, tools and resources in the mobile environment as those used for desktop applications. Sprint’s open developer tools will be a focus of Sprint’s eighth annual Application Developer Conference, taking place Dec. 10–12.
“Our announcement today represents another industry-first for Sprint,” said Len Barlik, vice president of wireless and wireline services for Sprint. “We are presenting a way to unify the desktop and mobile developer communities to accelerate the delivery of innovative services to our customers. This is another example of Sprint’s long history of leadership in working closely with developers to encourage them to create new content that can be offered on Sprint phones. The Sprint Application Developer Conference brings together hundreds of developers each year so they have a clear understanding of the most current information on exciting products and developer tools.”
Sprint’s Open Software Platform
The Sprint platform is an open, standards-based mobile Java ecosystem that extends desktop computing and Web 2.0 capabilities to devices operating on the Sprint Mobile Broadband Network. To get started, developers can access the full suite of Sprint Titan development resources at http://developer.sprint.com. It is the first of several open software platforms that Sprint will make available to developers.
The platform supports existing MIDP Java ME applications and adds the more capable CDC/Foundation Java Virtual Machine and OSGi framework for new high-capability applications. Support for the Eclipse embedded Rich Client (eRCP) application model means the platform can run generically written rich GUI applications across a broad range of devices and desktop computers. Support for the Widget application model provides Web developers the ability to develop rich Web applications that take full advantage of the device’s functionality. This allows developers to easily move Eclipse-based or Web applications from the desktop to Sprint devices. The platform also includes APIs to give developers access to Sprint-specific device features, such as location, messaging and multimedia, which can be useful in a variety of business- and consumer-oriented applications, such as field service or unified messaging.
As part of today’s launch, the platform is available with its own set of developer tools that plug in to Eclipse IDE and support both mobile and non-mobile application development and deployment. The toolset leverages existing server or desktop frameworks and provides on-device debugging and profiling, along with device emulation.
For enterprise customers, the open platform leverages the same JAVA application development framework that many customers already use for desktops and servers. This means applications can be easily extended to Sprint wireless devices with little resource training or additional investment beyond what is already in place today. In addition to extending enterprise applications to the mobile environment, the platform enables device management functionality so account administrators can remotely manage their devices and applications.
Application Developer Program
Sprint’s Application Developer Conference has provided tools for third-party developers to create wireless applications that customers can run on Sprint phones since 2001, when Sprint launched the Wireless Web on its phones. Rich Miner, Google vice president of mobile technology, will deliver a keynote speech at this year’s conference. Other keynote speakers this year include Dan Hesse, CEO of Sprint, and Steve Elfman, president of network operations and wholesale for Sprint.
The developer conference is held by the Sprint Application Developer Program (ADP), which provides industry-leading developer support. Additional resources available through the ADP include handset specifications, online forums for interaction and knowledge sharing, white papers and interactive online training. A monthly newsletter distributed to registered developers highlights key wireless data activity, such as handset launches and new mobile development capabilities. For more information, please visit the Sprint ADP Web site at http://developer.sprint.com.
Sprint’s ADP also offers a Professional Developer Program, which extends advanced capabilities to members for an annual fee. Benefits include access to the majority of Sprint’s restricted APIs (including GPS, address book and messaging) required to permit more sophisticated applications, plus enhanced technical support and access to the certification process. Developers who would like to join the Professional Developer Program can visit the ADP Web site and click “Working with Us.”
Sprint’s Open Strategy
In addition to speaking at Sprint’s Application Developer Conference, Elfman will hold a “Buzz About Wireless” live chat on the subject of Sprint’s Application Developer Program and open strategy at 12:30 p.m. (EST) on Dec. 18. For more information, please visit www.buzzaboutwireless.com.
Sprint is committed to offering mobile content and applications to its customers when, where and how they want them:
* Sprint has employed an open Internet approach, and the Sprint Application Developer Program has been providing tools for third-party developers since Sprint first launched the Wireless Web on its phones in 2001.
* Through relationships with third parties, hundreds of non-Sprint-branded applications, games and other digital media may be downloaded from the mobile Internet to operate on Sprint phones.
* More than 200 different non-Sprint-branded devices, from machine-to-machine to telemetry, operate on the Sprint network through a widely respected device certification process.
* Sprint is a charter member of the Open Handset Alliance, along with more than 30 other participating companies, supporting the free and open mobile applications platform named Android.
[AT&T is testing femotcells in employee’s homes and plans to make the technology available in a trial market next year.]
New York (AP) — “AT&T Inc., the country’s largest wireless carrier, is testing a technology that can improve the signal available to cell phones in subscribers’ homes, and plans to make it available in a trial market next year.”
[S.Korean deregulation creates opportunity for foreign mobile device platforms such as Google’s Android and open-source Linux software.]
Seoul — “South Korea said on Wednesday it would lift a rule that forces handsets sold domestically to use a locally developed mobile device platform, opening the market to more foreign cellphones.”
[LG develops the first 3GPP LTE handset modem chip supporting download speeds of 100Mbps and upload speeds of 50Mbps.]
Seoul — LG Electronics (LG), a worldwide technology and design leader in mobile communications, announced that it has independently developed the first handset (user equipment) modem chip based on 3GPP Long Term Evolution (LTE) technology standards. The modem chip can theoretically support wireless download speeds of 100Mbps (megabits per second) and upload speeds of 50Mbps. This represents a significant step toward creating a market-ready 4G phone.
The Modem Chip is the most crucial component required to create a viable 4G handset with LTE technology, the leading candidate to become the fourth generation mobile phone technology standard.
LG demonstrated the chip today at its Mobile Communication Technology Research Lab in Anyang, Korea, achieving wireless download speeds of 60 Mbps and upload speeds of 20 Mbps. The fastest phones currently on the market use HSDPA technology and download at a maximum speed of 7.6 Mbps.
Higher download speeds are becoming more and more important as people are increasingly using their mobile phones to watch movies, listen to “usic and browse the internet. With LTE technology, users can download a 700 MB movie file in less than one minute at speeds of 100 Mbps. LTE technology would also allow consumers to simultaneously stream four HD movies without any buffering.
For the past three years, LG have been pursuing 3GPP LTE standardization, working to develop and test commercially viable LTE technology with approximately 250 of R&D staffs. The result is a 13 by 13 mm modem chip, perfectly sized for the next generation of slim-yet-powerful handsets. For its demonstration today, LG used a test terminal running Windows Mobile to play back high quality, on-demand video. In addition to this handset modem, LG is also developing the first preliminary LTE-based data card, which can replace the wireless cards currently used in computers.
“Now that LG has developed and tested the first 4G handset modem, a commercially viable LTE handset is on the horizon,” said Dr. Woo Hyun Paik, CTO of LG Electronics. “This latest breakthrough gives us a strong technology advantage that we will use to bolster our industry leadership.”
Most of the major mobile operators are pursuing LTE-based 4G technology. Because it is based on the existing WCDMA technology evolutionary path, 85 percent of WCDMA service-provided carriers will be able to upgrade their networks to LTE with far less cost than building a new network based on a different technology.
According to market research company Strategy Analytics, the global LTE handset market will double from 70 million sales units in 2012 to 150 million sales units by 2013.
Dr. Paik added, “Our successful development of this LTE handset modem signals the start of the 4G mobile communications market. LG will continue to advance this technology and develop further technologies to maintain global leadership.”
Mobile phone carriers have now built LTE test networks and are currently working on early stage handsets. The first LTE mobile phones will likely reach the market in 2010. 209c
[Nokia lowers Q408 mobile device industry volumes - gives outlook for 2009 at Capital Markets Day event.]
New York — Today, at its annual Capital Markets Day event, Nokia lowered its forecast for mobile device industry volumes for the fourth quarter 2008. Nokia also presented forecasts for the company and the industry for 2009. At the event, senior company executives outlined how Nokia’s strategy, robust financial structure and competitive product portfolio are expected to ensure the company remains in a position of strength in the more challenging economic times ahead.
Nokia President and CEO, Olli-Pekka Kallasvuo, highlighted the benefits of Nokia’s brand, scale and number one market position, stating: “2009 will be challenging for our industry, however we have a strong, enviable base to build on and I believe we will continue to strengthen our position on many fronts. Building on our operational flexibility, Nokia is acting to reduce costs appropriately in the current slowing environment. At the same time, we remain fully committed to making the investments to build the future of our exciting industry and Nokia’s continued competitiveness.”
Nokia CFO, Rick Simonson, emphasized that appropriate cost reductions are being effected now and are continuing in plans for 2009 and 2010: “Nokia’s highly variable, low fixed cost business model allows us to scale to a declining market. We are also acting on all fronts to reduce our costs beyond what may be attributable solely to the scalable aspects of the business model - moving to reduce cost of goods sold even further, reduce operational expenditure appropriately, and scale back capital expenditure. We expect these strong actions to offset, in part, the negative impact of slowing sales.”
Outlook for Nokia and the mobile device industry - fourth quarter 2008
The mobile device market slowdown has continued more rapidly than previously expected since Nokia issued an update on November 14, 2008. The industry continues to be impacted by the effects of a global consumer pull-back in spending, currency volatility, and decreased availability of credit. Nokia believes the slowdown is apparent in varying degrees across all markets, while the most recent incremental impact in the emerging markets has been more pronounced than in other markets. As a result, and while noting the lack of visibility due to the factors cited above, Nokia is revising its fourth quarter 2008 outlook as follows:
- Nokia now estimates that fourth quarter 2008 industry mobile device volumes will be lower than the previous estimate of approximately 330 million units, which would result in full year 2008 industry mobile device volumes below the earlier estimate of 1.24 billion units.
- Nokia believes there is insufficient visibility in the marketplace to confirm its prior estimate for its fourth quarter 2008 mobile device market share, which was expected to be at the same level or slightly up from an estimated 38% in the third quarter 2008.
Outlook for Nokia Siemens Networks and the mobile infrastructure, fixed infrastructure and related services market - 2008
- Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure, fixed infrastructure and related services market to be flat in euro terms in 2008, compared to 2007.
- Nokia and Nokia Siemens Networks continued cost synergy target for Nokia Siemens Networks is to achieve substantially all of the EUR 2.0 Billion of targeted annual cost synergies by the end of 2008.
Targets and forecasts for Nokia and the mobile device industry - 2009 and going forward
- Nokia expects that the mobile device market will continue to be negatively impacted by the effects of a slowdown in consumer spending. Nokia also expects that operator and retail distribution channels will go through a period of destocking, resulting in lower sales volumes by manufacturers (sell-in) than purchase volumes by consumers (sell- through) for the industry in the first half of 2009.
- While noting the extremely limited visibility, Nokia expects 2009 industry mobile device volumes to decline 5% or more from 2008 levels.
- Nokia expects the four billion mobile subscriptions mark to be reached in the first quarter 2009.
- Nokia targets an increase in its market share in mobile devices in 2009 compared to 2008, including increased share in smartphones.
- As previously announced, Nokia has adjusted its Internet services market focus to the areas of music, maps, media, messaging and gaming. Nokia estimates these targeted portions of the Internet services market will be approximately EUR 40 billion in 2011. In December 2007, Nokia estimated that the total Internet services market would be approximately EUR 100 billion in 2010.
- Nokia targets Services & Software net sales of EUR 2 billion or more in 2011.
- Nokia targets its Services & Software business to have 300 million unique services users by 2012.
Targets and forecasts for Nokia Siemens Networks and the mobile infrastructure, fixed infrastructure and related services market - 2009
- Nokia and Nokia Siemens Networks preliminary estimate is that the mobile infrastructure, fixed infrastructure and related services market will decline 5% or more in euro terms in 2009, from 2008 levels.
- Nokia and Nokia Siemens Networks target for Nokia Siemens Networks market share to remain constant in 2009, compared to 2008.
Nokia financial targets (non-IFRS*) - 2009
Given the unprecedented environment, Nokia will not, at this time, be giving operating margin targets for beyond 2009.
- Nokia Devices & Services operating margin target to be in the teens in 2009.
- NAVTEQ operating margin targeted to be somewhat above the Devices & Services operating margin in 2009.
- Nokia Siemens Networks operating margin target to be in the single digits in 2009.
Nokia priorities for 2009
In addition to updating its financial targets, Nokia also outlined key priorities for 2009.
These are:
- To ensure that Nokia’s cost base is appropriately sized for a more challenging environment;
- To grow mobile device market share, to capture growth opportunities in NAVTEQ and device enhancements, and to capture value from adjacent markets;
- To build on the momentum in Services & Software by continuing to grow and focus its services portfolio;
- To mobilize consumer email and consumer instant messaging for millions of Nokia device users, and;
- To further integrate and simplify Nokia’s web services user interface and device user interface.
* Non-IFRS results exclude special items for all periods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from the formation of Nokia Siemens Networks and from all business acquisitions completed after June 30, 2008. For the preceding periods, non-IFRS results exclude such items and adjustments arising from the formation of Nokia Siemens Networks only. Nokia believes that these non-IFRS financial measures provide meaningful supplemental information to both management and investors regarding Nokia’s performance by excluding the above-described items that may not be indicative of Nokia’s business operating results. These non-IFRS financial measures should not be viewed in isolation or as substitutes to the equivalent IFRS measure(s), but should be used in conjunction with the most directly comparable IFRS measure(s) in the reported results. 209e
