Nokia plans 40 new handset models

HELSINKI, Finland – Nokia Corp., the world’s largest mobile phone maker, plans to bring 40 new handsets to the market next year as it seeks to expand its already dominant market share amid increased competition from rivals Motorola Inc., Samsung Electronics Co. and Sony Ericsson.

The Finnish company, which has promised to launch a total of 35 new handsets in 2004, is trying to regain market share after gaps in its product range allowed competitors like Samsung and London-based Sony Ericsson, to chip away at its dominance in the mid- to high-end range of phones. In an update to investors outlining its forecasts Thursday in New York, Nokia said it sees the mobile phone market growing by around 10 per cent in 2005 from the 630 million units it expects to be sold in 2004.While unit sales will continue to show good growth, prices will fall and the value of the market will therefore increase at a slower pace, it said.Nokia said it aims to expand faster than the market and maintained its long-term market share goal of 40 per cent.The company has said it had a market share of 32,5 per cent in the third quarter, which was a recovery from the first and second quarters, but down from 37,4 per cent in the fourth quarter of 2003.”We estimate year-on-year mobile device volume growth in 2005 will be fastest in Latin America, Europe/Africa/Middle East and North America, while expansion in Asia-Pacific and China will be slightly slower,” chief executive Jorma Ollila said in a statement.Nokia said it aims to increase its competitiveness by broadening its product portfolio.In 2005, about two-thirds of Nokia’s mobile device launches will have cameras, while more than half are expected to be clamshell, slide and other non-bar designs, the company said.Earlier in the year, Nokia had said it was losing business to rivals because of intense competition but conceded it had been late to react to new trends and introduce products like fashionable “clamshell” handsets.”Industry dynamics have shifted, and we have been adapting our mind-set, customer approach, product portfolio and technologies to sharpen our competitive position,” Ollila said.-Nampa-APIn an update to investors outlining its forecasts Thursday in New York, Nokia said it sees the mobile phone market growing by around 10 per cent in 2005 from the 630 million units it expects to be sold in 2004.While unit sales will continue to show good growth, prices will fall and the value of the market will therefore increase at a slower pace, it said.Nokia said it aims to expand faster than the market and maintained its long-term market share goal of 40 per cent.The company has said it had a market share of 32,5 per cent in the third quarter, which was a recovery from the first and second quarters, but down from 37,4 per cent in the fourth quarter of 2003.”We estimate year-on-year mobile device volume growth in 2005 will be fastest in Latin America, Europe/Africa/Middle East and North America, while expansion in Asia-Pacific and China will be slightly slower,” chief executive Jorma Ollila said in a statement.Nokia said it aims to increase its competitiveness by broadening its product portfolio.In 2005, about two-thirds of Nokia’s mobile device launches will have cameras, while more than half are expected to be clamshell, slide and other non-bar designs, the company said.Earlier in the year, Nokia had said it was losing business to rivals because of intense competition but conceded it had been late to react to new trends and introduce products like fashionable “clamshell” handsets.”Industry dynamics have shifted, and we have been adapting our mind-set, customer approach, product portfolio and technologies to sharpen our competitive position,” Ollila said.-Nampa-AP