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Nokia moves towards applications business

Nokia, the world's largest maker of mobile phones, will increasingly focus its business on applications like navigation software and messaging, Chief Financial Officer Rick Simonson said.

Simonson said his company's broad market coverage and leadership in certain areas, such as navigation, give it a competitive edge against rivals Apple and Sony Ericsson, which also aim to launch similar services and applications.

Nokia will maintain its presence in the lower end of the market - mobile phones without high-tech features such as web searching and navigation - even as it ramps up its focus on applications for more advanced devices.

Earlier Thursday, Nokia posted a smaller-than-expected second-quarter earnings decline but cut its guidance for margins and market share, sending its share price lower.

Simonson said the new margin guidance didn't imply a huge difference from the company's previous outlook. But, he said, the company's earnings could be weighed down in the third quarter by a slowdown in the supply of components needed for its handsets and by an appreciating Japanese yen.

It is more important for Nokia to take "value shares," selling more high-margin phones, than to increase its total market volumes, he said, and added that the company's presence in the valuable smartphone segment is currently on the rise.

Источник: Total Telecom

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