14 DAY TRIAL // As today is the annual Capital Market Day, Nokia has presented us with estimates for the upcoming harsh financial times. In a nutshell, the Finnish company has decided to lower the amount of devices released on the market, for it is believed that the last quarter of 2009 will not be very productive. Also, Nokia has showed that it has the resources and strength not only survive, but also to thrive next year, a year that is supposed to be far less profitable than ever expected. In order to convince the public, Nokia has revealed part of its strategy, which should keep it in the top over the next calendar year.
Nokia's President and CEO, Olli-Pekka Kallasvuo, has made a very confident declaration regarding the fact that a brand such as Nokia will not only survive, but also hold its ground, whereas other such companies might not. "2009 will be challenging for our industry, however we have a strong, enviable base to build on and I believe we will continue to strengthen our position on many fronts. Building on our operational flexibility, Nokia is acting to reduce costs appropriately in the current slowing environment. At the same time, we remain fully committed to making the investments to build the future of our exciting industry and Nokia's continued competitiveness." Kallasvuo said.
Nokia's CFO, Rick Simonson, tried to underline the fact that the earlier mentioned measures would be successful for 2009, as well as for 2010. "Nokia's highly variable, low fixed cost business model allows us to scale to a declining market. We are also acting on all fronts to reduce our costs beyond what may be attributable solely to the scalable aspects of the business model - moving to reduce cost of goods sold even further, reduce operational expenditure appropriately, and scale back capital expenditure. We expect these strong actions to offset, in part, the negative impact of slowing sales." he explained.
Also in the same press release, Nokia reveals in great detail all the plans and measurements which are to be taken in all the fields it is active. These refer to the outlook of the mobile device industry for the 4th quarter of 2008, targets and forecasts for 2009 and after, the outlook for Siemens Networks and mobile infrastructure plus the fixed infrastructure and the related services market, targets and forecasts for Nokia Siemens Networks, mobile and fixed infrastructure, the 2009 priorities and the official financial targets for the challenging years to come.