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Has Nokia learnt from its mistakes in 2004? What challenges still remain?
Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever. Observers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokias market share and revenues have been on the decline. Falling average sales prices (ASPs) and market share have had an impact and forced Nokia to further re-think its strategy towards developed and emerging markets.
The year 2004 proved a particularly difficult year for Nokia. Problems have ranged from perceived complacency and arrogance, to a failure to read market trends and adapt accordingly. Furthermore, Nokia has been lagging in design innovation. Established competitors for both products and services are also challenging Nokia, especially Asian manufacturers, the newest of which comes in the form of BenQ, which recently took over Siemens Mobile division. So for just how long will Nokia remain the No.1 mobile player?
This report provides an independent and strategic assessment of Nokias future plans and strategy. Among others, it answers key questions, such as:
- What are the challenges that Nokia faces now?
- Will it remain market leader, and if so how?
- How is Nokias strategic relationship with mobile operators changing?
- What kind of synergies does Nokia experience between its business units?
- How do Nokias segmentation models differ from its competitors?
- What are Nokias strengths and weaknesses and how do they effect you?
- Is Nokias handset portfolio adequate to fend off challenges from its rivals, e.g. its lack of clamshell & 3G models?
- What are Nokias main goals and targets and will they be achieved?
Greater segmentation is forcing device manufacturers to re-assess their positioning within the market. Nokia clearly wants to be present across all market segments but will have to adapt to smaller shipment volumes, with all the development issues and revenue costs implications associated with a smaller production line. What will these shipment volumes be?
This unique report focuses exclusively on Nokias aim to remain the dominant player in the handset mobile market in the face of increasing competition from established manufacturers and new comers. It critically evaluates the measures that Nokia has adopted to deal with the challenges that the company faces. Will they be enough for Nokia to remain No 1? These are examined from a strategic standpoint and are discussed against those of its competitors.
This report will also tell you:
- Nokias latest market share and year-on-year comparisons with its main competitors
- Nokias reaction to a changing mobile phone market
- Nokias new products, and planned products that are in the pipeline
- Nokias handset shipment statistics by region
- Nokias financial information by business unit
- Nokias relationships with suppliers and operators
- What Nokias regional strategies are.
You cannot afford to ignore this report. Whether you are an operator buying their products or a competitor trying to outsell them, Nokia cannot be disregarded. You should place your order for this report today.
Nokia: On the road to recovery?
Has Nokia learnt from its mistakes in 2004? What challenges still remain?
Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever. Observers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokias market share and revenues have been on the decline. Falling average sales prices (ASPs) and market share have had an impact and forced Nokia to further re-think its strategy towards developed and emerging markets.
The year 2004 proved a particularly difficult year for Nokia. Problems have ranged from perceived complacency and arrogance, to a failure to read market trends and adapt accordingly. Furthermore, Nokia has been lagging in design innovation. Established competitors for both products and services are also challenging Nokia, especially Asian manufacturers, the newest of which comes in the form of BenQ, which recently took over Siemens Mobile division. So for just how long will Nokia remain the No.1 mobile player?
This report provides an independent and strategic assessment of Nokias future plans and strategy. Among others, it answers key questions, such as:
- What are the challenges that Nokia faces now?
- Will it remain market leader, and if so how?
- How is Nokias strategic relationship with mobile operators changing?
- What kind of synergies does Nokia experience between its business units?
- How do Nokias segmentation models differ from its competitors?
- What are Nokias strengths and weaknesses and how do they effect you?
- Is Nokias handset portfolio adequate to fend off challenges from its rivals, e.g. its lack of clamshell & 3G models?
- What are Nokias main goals and targets and will they be achieved?
Greater segmentation is forcing device manufacturers to re-assess their positioning within the market. Nokia clearly wants to be present across all market segments but will have to adapt to smaller shipment volumes, with all the development issues and revenue costs implications associated with a smaller production line. What will these shipment volumes be?
This unique report focuses exclusively on Nokias aim to remain the dominant player in the handset mobile market in the face of increasing competition from established manufacturers and new comers. It critically evaluates the measures that Nokia has adopted to deal with the challenges that the company faces. Will they be enough for Nokia to remain No 1? These are examined from a strategic standpoint and are discussed against those of its competitors.
This report will also tell you:
- Nokias latest market share and year-on-year comparisons with its main competitors
- Nokias reaction to a changing mobile phone market
- Nokias new products, and planned products that are in the pipeline
- Nokias handset shipment statistics by region
- Nokias financial information by business unit
- Nokias relationships with suppliers and operators
- What Nokias regional strategies are.
You cannot afford to ignore this report. Whether you are an operator buying their products or a competitor trying to outsell them, Nokia cannot be disregarded. You should place your order for this report today.
Table of contents
Chapter 1 Executive Summary
- 1.1 Nokia: The year ahead
- 1.2 Outlook for handset manufacturers
- 1.2.1 Changing Segmentation
- 1.3 Outlook for service providers
- 1.4 Major Market Trends
- 1.4.1 Significant Growth in Mobile Subscribers
- 1.4.2 Cost of Devices is Coming Down
- 1.5 Summary
Chapter 2 Introduction
- 2.1 Methodology
- 2.2 Organisation of the Report
- 2.3 Aims and Focus of the Report
Chapter 3 Nokia Overview
- 3.1 Landscape
- Chart 3.1: Total Handset Models Released Globally by Vendor during 2004
- 3.1.2 Nokia aims to narrow 3G gap with new W-CDMA devices
- 3.1.3 Industry Trends
- Table 3.1: World Mobile Phone Subscribers Base
- 3.1.4 A Changing Business Model
- 3.1.4.1 Nokias reaction to evolving industry dynamics
- 3.2 Impact of no-frills MVNOs on Nokia
- 3.3 Nokias focus on emerging markets requires a new business model
- 3.4 Nokia tackles emerging markets
- 3.5 Nokias Products and services analysis
- 3.5.1 Nokias Business Groups
- Figure 3.1: Nokias organisational structure
- 3.5.1.1 Mobile Phones
- 3.5.1.2 Multimedia
- 3.5.1.3 Enterprise Solutions
- 3.5.1.4 Networks
- 3.5.2 Technology Platforms
- 3.5.3 Nokias Technological Activities
- 3.5.4 Nokias Research & Development Activities
- Table 3.2: Nokia Worldwide R&D facilities
- 3.5.4.1 Reducing R&D through platform model
- 3.5.4.1 R&D in Asia
- 3.6 Nokias Management Structure
- 3.7 Nokias Synergy
- Figure 3.2: Nokias triangular dynamics concept
- 3.8 Out of Synchronisation
- 3.8.1 3G Complexities
- Chart 3.2: 3G penetration in selected markets
- 3.8.1.1 The Problem with 3G
- 3.9 Forum Nokia Pro
- 3.10 Nokias Past Mistakes
- 3.11 Nokias latest saga on market share
- Chart 3.3: Handset market share by vendor, Q1 2005
- 3.12 Nokias Response to Critics
- 3.12.1 Recent Steps
- 3.12.2 Future Actions
- 3.13 Nokia and Blogging
- Table 3.3: Nokia handsets compatible with Lifeblog
- 3.13.1 Nokia, Blogging, and the Operator
- 3.13.2 Blogging Roll-Out: 2006 - the year of blogging
- 3.14 Nokia Expands its core business
- Table 3.4: Nokia Sensor-enabled handsets
- 3.14.1 Nokia challenges Tablet PC
- 3.14.2 Nokia expands its entertainment services
- 3.14.3 Nokia and Apple
- 3.14.4 Nokia and Billing
- 3.14.5 Nokia launches network initiatives
- 3.15 Nokia launches Series 40 application developers
Chapter 4 Performance and Financial Position
- Table 4.1: Nokia Q1/2005 results by business group (? m)
- Chart 4.1: Nokia net sales by business group, 2004
- Table 4.2: Pricing of new N-Series handsets before operator subsidies
- 4.1 Mobile Phone Business Group
- Table 4.3: Mobile phones group revenue 2003/2004
- Table 4.4: Nokia mobile device volume by geographic area (million units)
- Table 4.5: Nokia vs industry Smarthphone shipments (million) 2004-05
- 4.2 Multimedia Business Group
- Table 4.6: Multimedia group revenues, 2003/2004 (?m)
- Table 4.7: Nokias 3G handset range
- 4.2.1 Nokia and Multimedia
- 4.3 Enterprise Solutions Business Group
- Table 4.8: Enterprise Solutions group revenues, 2003/04 (? m)
- 4.4 Networks Business Group
- Table 4.9: Network Business group revenues, 2003/2004 (?m)
- Table 4.10:Networks net sales by geographic area (?m)
- 4.5 Nokia and Convergence: Nokia must adopt a flexible approach
- 4.6 Nokia and Wi-Fi
- 4.7 Nokia and WiMAX
- 4.8 Nokia and IMS
- 4.8.1 Nokia and Telecom Italia
- 4.8.2 Nokia Trials of IMS
- 4.8.2.1 Nokia, O2, and NTL
- 4.8.2.2 Nokia and Sierra Wireless
- 4.9 Security and Convergence
- 4.10 HSDPA
- 4.10.1 Nokia on HSDPA
- Table 4.11: Nokias HSDPA trials
- 4.10.2 Nokias I-HSPA and HSUPA developments
- 4.11 Nokia and EDGE
- 4.11.1 Nokia dominates the EDGE market
- 4.11.2 Nokia finds itself in a prime position
- Chart 4.3: Number of EDGE handsets released by vendor
- 4.12 Other HSDPA trials
Chapter 5 Analysing Nokias Strategy
- 5.1 Market Strategy
- 5.2 Nokias Strategy
- 5.2.1 Global Strategy
- 5.2.1.1 Expand Mobile Voice
- 5.1.1.2 Drive Consumer Mobile Multimedia
- 5.1.1.3 Bring Extended Mobility to Enterprise
- 5.2 Nokia and its partners
- 5.3 Nokias strategic outlook
- Chart 5.1: Nokias Global Handset Market Share, 2001-2004
- Table 5.1: N-Series phones
- 5.4 Ahead of its time
- 5.5 Nokias Strategic Approaches
- 5.5.1 Design flexibility enables a mix of strategies
- 5.5.2 Product focus
- 5.5.3 Building blocks based
- 5.5.4 Modular approach
- 5.6 Nokia has learnt its lesson
- 5.7 Nokias Position in the market
- 5.8 Mobile Phone Business Group
- Chart 5.2: Smarthphone share as % of total Nokia revenues, Q1 2004-Q4 2005
- 5.9 Nokia and the Customer
- 5.10 Nokia and CDMA
- Chart 5.3: Nokias CDMA handset market share
- Table 5.2: Nokias CDMA successes
- 5.11 Multimedia Business Group
- 5.12 Nokia and PoC
- 5.13 Enterprise Solutions Business Group
- 5.14 Networks Business Group
- 5.15 Nokia and operators
- 5.15.1 Operators and Data Services
- 5.15.1 Where are the services?
- 5.15.2 Moving towards a solution
- 5.16 Working together
- 5.17 Partnering with Nokia
- 5.18 Nokias business environment and China
- 5.19 Challenges facing Nokia
- 5.20 Nokias Dependency on operators
- 5.21 Nokias Key Risks
- 5.21.1 The threat posed by BenQs acquisition of Siemens
- 5.21.1 Nokias Risk Management
- 5.22 Nokias Supply Chain
- 5.23 Nokias Market
- Table 5.3: Nokia handset shipments by geographic area
- Table 5.4: Countries where Nokia has R&D facilities
- 5.23.1 Nokias position in the Americas and Asia
- 5.23.1 Nokia in Europe
- Chart 5.4: Western European handset market share by vendor, Q1 2005
- Chart 5.5: Nokias year-on-year handset share in Western Europe compared to other vendors, 2003-2004 (% change)
- 5.23.2 Nokia in China
- Table 5.5: Nokias China statistics
- Chart 5.6: Handset market share by vendor in China
- 5.23.2.1 A looming Asian threat on the horizon
- 5.23.3 Nokia in India
- 5.23.3.1 Expanding Manufacturing Capability
- 5.24 How can Nokia grow its Business?
- 5.25 Threats faced by Nokia
- 5.25.1 Growth
- 5.25.2 Meeting operators demands
- 5.26 Convergence
- 5.26.1 Nokia on Convergence
- 5.26.1.1 Pushing DVB-H Mobile TV technology
- 5.27 Cost control and supplier relationships
- 5.27 ASP erosion
- 5.27.1 Nokia on ASPs
- 5.28 Customisation
- 5.29 Nokia on Customisation
- 5.30 Nokia: A final Assessment
- 5.30.1 Visiongains Nokia survey
- 5.30.1.1 Nokias growth
- 5.30.1.2 Nokias Challenges
- 5.30.1.3 Synergies
- 5.30.1.4 Handset Portfolio
- 5.30.1.5 Outsourcing
- 5.30.1.6 Partner Relationships
- 5.30.1.7 Developed and Emerging markets strategy
- Table 5.6: PEST Analysis of Nokia
- Table 5.7: SWOT Analysis of Nokia
Chapter 6 Competitive landscape
- Chart 6.1: World Handset Shipments Market Share by vendor, 2004
- Chart 6.2: Nokias Global Handset Market Share Pattern, 2001-2004
- 6.1 Infrastructure Market Shares
- Chart 6.3: Infrastructure Market Share for Key Vendors, 2004
- Chart 6.4: Nokias Overall Infrastructure Market Share, 2000-2004
- 6.1.1 GSM infrastructure
- Chart 6.5: Vendor Share in GSM Infrastructure Market, 2004
- Chart 6.6: Vendor Share in CDMA infrastructure, 2004
- Chart 6.7: Comparative profit/loss of top infrastructure vendors, 2001-2004
- Chart 6.8: Comparative market share of top infrastructure vendors, 2000-2004
- Chart 6.9: Comparative revenues of top infrastructure vendors, 2001-2004
- 6.2 The Main Handset Opposition
- 6.2.1 LG
- Chart 6.10: Comparative handset market shares of top vendors, Q2 2004-Q1 2005
- 6.2.2 Sony-Ericsson
- 6.2.2.1 Options for Sony-Ericsson
- 6.2.3 Motorola
- 6.2.4 Samsung
- 6.2.5 Siemens
- 6.2.6 Asian-Chinese Competition
- Chart 6.11: Handset ASP comparison of leading vendors, Q2 2004-Q1 2005
Chapter 7 Conclusions
Chapter 8 Recommendations
- 8.1 Reading the market
- 8.2 ASP and the market
- 8.3 Relationships with Partners
- 8.4 Relationships with Operators
- 8.5 Market Segmentation
- 8.6 Emerging Markets Strategies
- 8.7 Outsourcing
Appendix A About visiongain
Appendix B Report evaluation form
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