Mobile giant’s chief executive says all eyes are on the money.
As the mobile phone market moves from happy times into a more bleak outlook, Finnish mobile giant Nokia plans to focus on generating profit rather than just than cutting prices like many of its competitors, according to the man at the helm.
That bold statement was made by Nokia’s chief executive Olli-Pekka Kallasvuo in an interview with the Financial Times newspaper.
"We will continue to combine market share and margins in the right way in order to maximize the bottom line," Kallasvuo was quoted as saying in an interview. This in stark contrast to some of its smaller rivals, like LG Electronics, who have said they will do anything to reach their sales targets.
Nokia lost some market share in the second half of last year as it shied away from some fierce price battles.
The mobile market is expected to see its weakest year in 2009, with analysts forecasting on average for a 6.6 per cent fall in sales volumes.
But Nokia expects to weather the fall better than some rivals. "When times are tougher, people who have stronger positions fare relatively better than the competition . . . So, overall, I believe many of our competitors will have limitations here in terms of their ability to do things," Kallasvuo told the paper.
Nokia has said it aims to increase its market share in 2009, helped by consumers' appetite for cheaper models.
"The fact that we are commercial in all price points will give us the possibility, if the trade-down happens, to sell another device, which is not always the case with competitors who have a more limited portfolio," Kallasvuo said.
Nokia has bought a dozen companies - including an $8.1 billion acquisition of mapping company Navteq - to jump-start its internet business as growth in the mobile phone market stalls.
Nokia has also said it was looking for smaller acquisitions to strengthen its internet services offering, and Kallasvuo told the paper the company does not have "any big pieces missing" in its services portfolio.
source
That bold statement was made by Nokia’s chief executive Olli-Pekka Kallasvuo in an interview with the Financial Times newspaper.
"We will continue to combine market share and margins in the right way in order to maximize the bottom line," Kallasvuo was quoted as saying in an interview. This in stark contrast to some of its smaller rivals, like LG Electronics, who have said they will do anything to reach their sales targets.
Nokia lost some market share in the second half of last year as it shied away from some fierce price battles.
The mobile market is expected to see its weakest year in 2009, with analysts forecasting on average for a 6.6 per cent fall in sales volumes.
But Nokia expects to weather the fall better than some rivals. "When times are tougher, people who have stronger positions fare relatively better than the competition . . . So, overall, I believe many of our competitors will have limitations here in terms of their ability to do things," Kallasvuo told the paper.
Nokia has said it aims to increase its market share in 2009, helped by consumers' appetite for cheaper models.
"The fact that we are commercial in all price points will give us the possibility, if the trade-down happens, to sell another device, which is not always the case with competitors who have a more limited portfolio," Kallasvuo said.
Nokia has bought a dozen companies - including an $8.1 billion acquisition of mapping company Navteq - to jump-start its internet business as growth in the mobile phone market stalls.
Nokia has also said it was looking for smaller acquisitions to strengthen its internet services offering, and Kallasvuo told the paper the company does not have "any big pieces missing" in its services portfolio.
source
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