Nokia 2007 Annual Report Download - page 42

increasingly offering mobile phones under their own brand, which increases competition from non
branded mobile device manufacturers. We also face competition from smaller mobile device
manufacturers, such as ZTE, in certain markets.
As a result of developments in our industry, including the convergence of mobile device technology
with the Internet, we also face new competition from companies in related industries, such as
Internetbased products and services, consumer electronics manufacturers, network operators and
business device and solution providers, some of which have more scale and experience and a
stronger market presence in certain market segments, such as Internet services. In addition, new
companies, primarily consumer electronics manufacturers, are entering the mobile device business.
These competitors include, but are not limited to Apple, Garmin, Google, Palm, Research in Motion,
Sony and TomTom. Further, some of our traditional competitors have also expanded into the areas of
Internet services and enterprise software, and mobile network operators are also seeking to provide
services to consumers for their own branded devices, including both Nokia devices and devices from
other manufacturers.
Further, as the industry now includes increasing numbers of participants that provide specific
hardware and software layers within products and solutions, we face competition at the level of
these layers rather than solely at the level of complete products and solutions. An example of such a
layer is operating system software, with competitors including, but not limited to, Apple, Google, HP,
Microsoft, Palm and Research in Motion.
The industry is increasingly complex and challenging, and is driving a continuing trend towards
various types of consolidation among industry participants. However, it is difficult to predict how the
competitive landscape of the mobile device industry will develop in the future, as the parameters of
competition are less firmly established than in mature, lowgrowth industries where the competitive
landscape does not change greatly from year to year.
See “Item 3.D Risk Factors—Competition in our industry is intense. Our failure to maintain or improve
our market position or respond successfully to changes in the competitive landscape may have a
material adverse effect on our business and results of operations.”
Nokia Siemens Networks
This section describes the business of Nokia Siemens Networks, a new company jointly owned by
Nokia and Siemens and consolidated by Nokia, which started operations on April 1, 2007. Nokia
Siemens Networks combined Nokia’s former Networks business with Siemens’ carrierrelated
operations for fixed and mobile networks. Its operational headquarters is in Espoo, Finland, along
with two of its six business units. Nokia Siemens Networks has a strong regional presence in Munich,
Germany, where three of its business units are based. The Services business unit is based in New
Delhi, India. The Board of Directors of Nokia Siemens Networks is comprised of seven directors, four
appointed by Nokia and three by Siemens, and Nokia appoints the CEO.
Nokia Siemens Networks provides wireless and fixed network infrastructure, communications and
networks service platforms, as well as professional services to operators and service providers. Nokia
Siemens Networks has a broad product and services portfolio that can address the converging mobile
and fixed infrastructure markets, a global base of customers, a presence in both developed and
emerging markets, and one of the largest service organizations in the industry. Nokia Siemens
Networks focuses primarily on the GSM family of radio technologies and aims at leadership in: GSM,
EDGE and WCDMA/HSPA networks; core networks with increasing IP and multiaccess capabilities; fixed
broadband access, transport, operations and billing support systems; and professional services such as
managed services and consulting. Nokia Siemens Networks is also a vendor of mobile WiMAX
solutions.
In 2007, Nokia Siemens Networks started implementing a strategy aimed at moving the company
towards a solutionsdriven approach for its customers. This approach focuses on the specific business
needs of an operator and the daytoday running of its networks, rather than on solely providing
41