14 DAY TRIAL // Nokia’s President and CEO, Olli-Pekka Kallasvuo, talked at the company's Annual General Meeting about the future strategies the Finnish mobile phone maker will adopt in order to maintain its leading position on the market. According to him, the company will come to the market with “irresistible” devices and services that will be able to change the life of any mobile phone user.
It seems that the company will change in the future, adopting a new business model that will make a shift in the industry as well, due to the fact that it has to become more competitive than it is at the moment, when facing both traditional phone makers and new comers as its rivals. Nokia would combine high-quality devices with unique services, something that would allow it to increase customer retention and add value, Kallasvuo said, also adding that more and more users would choose Nokia and remain with it as well.
“To succeed in this new environment, we need to offer consumers irresistible solutions that improve their lives. During 2008, we have taken many steps to ensure we maintain our strong leading position in the device business, while increasing our focus on solutions-centric business models. We have focused our services investments on five primary categories: maps, music, messaging, media and games. These are the areas where the biggest opportunities lie,” Kallasvuo shared.
When talking about the already popular Nokia 5800 XpressMusic, Nokia's CEO stated that the phone had seen a lot of traction on the market, and that it had great chances to become one of the most popular devices the phone maker had ever released to the market. “We estimate that this smartphone alone accounts for around 20 per cent of all touch screen devices sold worldwide. It offers unique value for those who want to experience their music on the move, particularly when combined with our innovative Comes With Music service.”
The smartphone area is not the only one that Nokia is interested in, Kallasvuo stressed, especially in times of recession, and the company plans to focus on mid-level devices as well. In addition, it will also enhance the definition of “smartphones,” by moving the features of these devices into the mid-level area, with a helpful hand provided by its software platform.
“The Symbian operating system is the world's most widely used software platform for advanced mobile phones,” he emphasized, while also adding that, “We believe that mobile computing should not be limited only to expensive, high-end devices. Expanding Symbian into lower price points is the right thing to do. We see this as a tremendous opportunity to increase efficiency, to get more scale for Symbian, and gain market share.”
In order to remain successful in the new business environment, the company will have to move away from the conventional. According to Kallasvuo, the phone maker will work with competitors, operators and new partners in new ways, to both compete and cooperate. The company is already making changes in its operations, and has also launched cost-saving programs, which are meant to offer it long-term savings.
“Innovation in the mobile communications industry is certainly not standing still. It is very clear we have to continue to invest in our future, but at a more appropriate pace. Given the current climate, we have to balance what is beneficial and sustainable for Nokia's long-term future, while adjusting the speed at which we operate.”
As many of you might already know, the global phone market is expected to contract even more during the ongoing year, yet there is also a reason for optimism, Kallasvuo stated, as there is a wide range of opportunities in the industry. “Mobile devices are becoming true mobile computers and consumers increasingly are more willing to use them in new ways with new services,” he concluded.