Mobile handset giant Nokia Corp. (NOK) said Wednesday that it expects industry mobile device volumes in 2010 to be up about 10% from 2009, while the company targets its mobile device volume market share to be flat with last year. At its investor day event today, Nokia also said it intends to improve user experience at its Devices & Services segment in 2010 and re-engineer its Symbian user interface.
Further, Nokia said in 2010, it targets lower average selling price erosion of its mobile devices, compared to recent years, and intends to increase its mobile device value market share slightly, compared to 2009.
Announcing the key targets and forecasts for the company and its industry for 2010, the world's biggest maker of mobile phones said it expects industry mobile device volumes to be up about 10% in 2010, compared to 2009. Nokia had said in October that it expects industry mobile device volumes to be about 1.12 billion units in 2009, down about 7% from about 1.21 billion units Nokia estimated for 2008.
On a non-IFRS basis, Nokia targets operating expenses of about EUR 5.7 billion in Devices & Services in 2010. The company plans to bring the segment's research and development expenses to below 10% of net sales in 2010 and targets its operating margin to be 12%-14% in 2010.
Further, Nokia said it continues to target Services net sales of EUR 2 billion or more in 2011 and intends to have 300 million active users for its services by the end of 2011.
Nokia had said in October that sales of Devices & Services declined 19.6% in the third quarter, mainly due to lower volumes combined with the decline in average selling price. The company recently announced job cuts at its R&D facilities in Finland, Denmark and Japan.
Nokia and Nokia Siemens Networks expect 2010 market to remain flat with 2009 in euro terms for the mobile and fixed infrastructure and related services market.
The company added that it, along with Nokia Siemens Networks, continues to target Nokia SiemensNetworks to reduce its non-IFRS annualized operating expenses and production overheads by EUR 500 million by the end of 2011, compared to the end of 2009.
Nokia and Nokia Siemens Networks target Nokia Siemens Networks non-IFRS operating margin of breakeven to 2% in 2010.
Last month, Nokia Siemens Networks revealed several plans including about 7% to 9% of workforce reduction, and realigning five of its business units into three, as a part of its plan to improve financial performance and return to growth. Nokia had cautioned earlier that it expects Nokia Siemens Networks market share to decline by more than the previously expected moderate decline in 2009. Hefty impairment charge in Nokia Siemens Networks forced the company to report a net loss for the third quarter. Net sales from Nokia Siemens Networks plunged 21.2% in the third quarter.
Excluding special items, Nokia and NAVTEQ target NAVTEQ operating margin to be higher thanDevices & Services operating margin in 2010. Nokia targets its financial income and expense to be about EUR 250 million expense in 2010. NAVTEQ sales were up 5.7% in the third quarter.
In terms of products, Nokia wants to improve its user experience and re-engineer its Symbian user interface. The company plans to deliver a major product milestone before mid-year 2010, and another major product milestone before the end of that year.
Nokia intends to deliver its first Maemo 6-powered mobile computer in the second half of 2010. The company also plans to increase the proportion of touch and/or QWERTY devices in its smartphone portfolio.
The goals include providing third party developers with better tools to create applications and content for the company's Ovi ecosystem and further optimizing the industry's lowest cost end-to-end business model in mobile phones. Additionally, Nokia intends to continue to build on its affordable and localized services offerings for emerging market consumers.
Nokia CEO, Olli-Pekka Kallasvuo, said, "In 2010, we will drive user experience improvements, and the progress we make will take the Symbian user interface to a new level. As an operating system, Symbian has reach and flexibility like no other platform, and we have measures in place to push smartphones down to new price points globally, while growing margins.''
NOK closed Tuesday's regular trade at $13.41, up from the previous close of $13.26, on 14.55 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.