Nokia 2012 Annual Report Download - page 18

• There are shifts in the desired features and products in the market that are appealing to
customers and consumers and such shifts may not be in our favor from a net sales or
profitability perspective; for instance, QWERTY devices have been a traditional strength for
us, but the overall market demand for QWERTY devices has declined and is expected to
continue to decline.
• We may not succeed in innovating and developing sufficiently locally relevant services,
applications and content in a speedy and cost-efficient manner to attract and retain
consumers in multiple markets with divergent local needs and preferences.
• Management focus and allocation of resources on the development and launches of our
Nokia products with Windows Phone and the creation of a successful ecosystem for Windows
Phone smartphones with Microsoft may result in less management focus and resources being
provided to our Mobile Phones business unit, as well as reduced monetary allocation for
instance, to product marketing.
• There may be elements in the ecosystems for our devices from our Mobile Phones business
unit that are not in other ecosystems we support, such as the Windows Phone ecosystem,
which may require additional resources and duplicative investments by us.
Our strategy for our HERE business includes various risks and uncertainties and may not
succeed if we are unable to establish a successful location-based platform, extend our
location-based services across devices and operating systems, maintain current sources of
revenue, provide support for our HERE business and create new sources of revenue from our
location-based services and commerce assets.
See item Item 4B. “Business Overview—HERE (formerly Location & Commerce)—” for a more
information about our HERE business. The HERE business is exposed to various risks and
uncertainties, including the following:
• The existing map license data customers may choose not to purchase, or purchase less,
content or services from our HERE business.
• We may have inaccurately predicted market developments in, or market size of, the
automotive navigation and personal navigation devices markets or we may lose market share
to other manufacturers or other devices offering navigation solutions, for instance
smartphones.
• We may not be able to use our location-based assets to compete on a standalone basis or
support the overall Nokia strategy.
• HERE is a recently launched brand and platform and as such may be disadvantaged to more
established brands and platforms.
• We may not be able to establish a successful location-based platform through HERE if other
competing location-based platforms are preferred by customers and consumers.
• We may not be able to establish a successful HERE application suite for the platforms we are
targeting.
• Investments into new business opportunities may not give a return on investment as planned,
or at all.
• We may not succeed in attracting strategic partners and developers to develop and support
our ecosystem around our HERE offering, or provide services that are supported by relevant
ecosystems.
• We may fail to attract business partners and merchants to our service offerings.
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