Edit Symbol List
Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.
Don't know the stock symbol? Use the symbol lookup tool.
Alphabetize the sort order of my symbols
Nokia Corporation (NOK)
Credit Suisse Group Technology Conference
November 29, 2011 3:00 PM ET
Timo Ihamuotila – Chief Financial Officer
Kulbinder Garcha – Credit Suisse
Previous Statements by NOK
» Nokia's CEO Presents at Barclays Capital Global Technology Conference (Transcript)
» Nokia Corporation CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Nokia Corporation's CEO Discusses Q3 2011 Results - Earnings Call Transcript
Okay, thanks Kulbinder and ladies and gentlemen, thanks for taking the interest towards Nokia. So in this small opening remarks, I will talk briefly first about Nokia’s strategy, then I will talk about our smartphones and mobile phones business and about our new product launches and finally, little bit about our financial targets both for the quarter and as well as then for longer term after the transition period.
And we’ll have plenty of time for Q&A after that. But first, before I begin, I need to remind you that any forward-looking statements I may make are predictions that involve risks and uncertainties, actual results may therefore differ materially from results we currently expect. We have identified factors that could cause such differences on pages 12 through 39 on Nokia’s 2010 20-F. I tried to say this faster than Matt Shimao our Head of Investor Relations.
So then to our strategy. So, first point to note about Nokia’s strategy is that, we have a very clear strategy very straightforward towards speed and accountability. And this is really, really important in a company which is in transition because we as many companies do this employee surveys and in our latest employee survey 70% of Nokia employees say, they are aligned, they understand the strategies clear. This is up from 40% and I think it is significant contributor to the fact that we have been able to increase the clock speed at the company.
So then on the actual strategy on smart devices, our strategy is to win in smartphones and transition our primary smartphone platform to Windows Phone on our mobile phones are feature phones business in the middle here, the strategy is bring Internet to the next billion.
We are also investing in future disruptions like html-5 or sensors to drive further differentiation on our product portfolio and then we have certain key differentiators like location or imaging which go across the strategy. And a very important part of the change at Nokia is also changing the way we operate and I’ll talk a little bit more about that later.
So then couple of words about the feature phone market. So we loosely define this at market which is €100 or below, we think it’s a great opportunity that part of the market is also getting smarter and this is a pretty big change in Nokia’s strategy because earlier we were running the mobile phones market more like a cash cow and now we are investing somewhat more to this market for the Internet, for the next billion strategy.
According our estimates, there are approximately one billion people at the moment on the planet who have Internet access and more than four billion people who are actually inside mobile phones networks coverage. So this is approximately three billion people opportunity and to simply put it, our aim is to bring the total cost of ownership of Internet access down and we think this is a great opportunity.
So then if we look at some of this is on which we are tackling this opportunity. So these are the Asha family of products which we launched at Nokia World about two, three weeks ago and when you look at this device, it is important to note that these developing markets are not homogenous.
You need to have certain key enablers in place to make it broadly on this market. First of these to dual-SIM and basically you need to have dual-SIM , you need to have it also in different form factors. Now here in the middle, I have this Asha dual-SIM product which is here and basically, it is as simple as this.
So we have a slot where you can stick another SIM the product understands up to five SIMs automatically and you can swap them without changing – without switching off the product. We call this easy swap. And this is something what nobody else has and with this feature, actually we sold about two million dual-SIM products Q2, almost 18 million Q3.
So very fast run. An example of a differentiating feature on mobile phones area which is very understandable at point-of-sale. The second thing which is important is an efficient browser. In the new Nokia feature phones, we have the Nokia browser which comprises Internet data up to 90% and this is super important on bringing the Internet access cost down bringing the Internet to the next billion.
And the third key point is applications. So these are very smart feature phones and even if they are job abate they have application support to applications like Facebook, Angry Birds, or WhatsApp for messaging on those markets. So we think again Internet for the next billion is a great opportunity and a very clear strategy for our mobile phones business. And then move to talk about smart devices.
So clearly the smartphone market is a growth market where you can drive a lot of value by innovation. The dynamics however on this market has fundamentally changed, it’s changed from battle of products to war of ecosystems as we call it. And we think that Nokia and Microsoft have the right assets to win in this new game.