Nokia 2008 Annual Report Download - page 34

Live concentrates on mobile devices with distinct designs and features targeted at specified style and
musicdriven consumer segments, with devices grouped under the Xpress subcategory. The Xpress
subcategory focuses on the mobile music experience and consumer multimedia. The Xpress sub
category also meets the needs of
Explore consumers below the NSeries price threshold. Highlights
from 2008 included the following:
• The announcement and shipments of the Nokia 5800 XpressMusic, a device optimized for
music and featuring a 3.2 inch touch screen display with tactile feedback, a 3.2 megapixel
camera and AGPS functionality.
• The announcement and shipments of the Nokia 7610 Supernova, a device featuring a slide
design, a 3.2 megapixel camera and theme colorizer—a function enabling the use of camera
images as a basis for the device’s wallpaper and illumination color.
Entry addresses markets where there has been and we believe continues to be significant potential
for growth. Our aim is to provide affordable mobile phones while cooperating with local mobile
operators to offer solutions designed for a low total cost of ownership. In instances where their price
point deems it appropriate, some of our
Connect and Live mobile devices also target entrylevel
markets.
Entry devices have voice capability, basic messaging and calendar features, and, increasingly,
color displays, radios, basic cameras and Bluetooth functionality. Highlights from 2008 included the
following:
• The announcement and shipments of eight mobile devices with functions and features
specially designed for consumers in emerging markets: the Nokia 1202, Nokia 1209, Nokia
1680 classic (from
Connect ), Nokia 2680 slide, Nokia 2600 classic (from Connect ), Nokia 5000
(from
Live ), Nokia 7070 Prism (from Live ) and Nokia 7100 Supernova (from Live ).
• The announcement of five mobile devices with functions and features specially designed for
consumers in emerging markets, all of which are shipping in the first half of 2009: the Nokia
1661, Nokia 2320 classic, Nokia 2323 classic, Nokia 2330 classic and Nokia 5130 XpressMusic.
Services
Functionalities that improve the mobile device user experience are evolving. We are increasing our
offering of consumer Internet services, in five areas—music, maps, media, messaging and
games—and working to deliver those services in an easily accessible manner to consumers. Our
Services unit, which during 2008 operated under the Services & Software name, is responsible for
developing this part of our business. The new name reflects organizational changes within the unit
resulting from our decision in 2008 to focus on offering consumer Internet services in the five areas
that we regard as both having the greatest appeal to consumers and being the most financially
viable: music, maps, media, messaging and games. Nokia estimates that the overall market value of
these targeted segments will be approximately EUR 40 billion in 2011. Our strategy in competing in
this market is for Nokia’s consumer Internet services to support our device average selling price,
extend and enhance the Nokia brand, generate incremental net sales and profit streams, and create
value and choice for consumers. Currently, we are working to grow our customer base and build
customer loyalty in each of the five focus areas. By combining value and choice for consumers with
our scale in mobile device deliveries, our goal is to become the global leader in “Internet on mobile.”
Over the past few years we have increased our research and development in services and supporting
software and have made a number of strategic acquisitions to bring us the knowledge and
technology that we believe we need to compete effectively in consumer Internet services. The most
recent acquisitions are as follows:
• In October 2006, we acquired Loudeye, a global leader in digital music platforms and digital
media distribution services; and gate5, a leading supplier of mapping, routing and navigation
software and services.
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