Nokia 2005 Annual Report Download - page 30

technologies and well-defined platforms to Nokia’s business groups as well as to external
customers.
For a breakdown of our net sales and other operating results by category of activity and
geographical location, see Note 3 to our financial statements included in Item 18 of this annual
report on Form 20-F.
Mobile Devices
The mobile communications market is dynamic, new vocabulary is emerging and definitions are
changing. This is in line with the introduction of entirely new products and product categories.
• Mobile device is a generic term for all device products made by our Mobile Phones,
Multimedia and Enterprise Solutions business groups.
• The term smartphone, or converged device, refers to a generic category of mobile device
that can run computer-like applications such as e-mail, web browsing and enterprise
software, and can also have built-in music players, video recorders, mobile TV and other
multimedia features.
• All Nokia Nseries devices produced by our Multimedia business group are called multimedia
computers to distinguish them from the generic category of smartphones.
Our mobile device businesses currently offer mobile phones and devices based primarily on the
following global cellular technologies: GSM/EDGE, 3G/WCDMA and CDMA. For 2005, the total mobile
device volume achieved by the Mobile Phones, Multimedia and Enterprise Solutions business
groups reached a record 265 million units, representing growth of 28% compared with 2004.
Based on an estimated global market volume for mobile devices of 795 million units, our global
market share was 33% for 2005, compared with an estimated 32% for 2004. This makes Nokia the
clear market leader in mobile devices.
In 2005, Nokia shipped a total of 28.5 million smartphones and more than 40 million mobile
devices with an integrated music player, making us the world’s largest music device
manufacturer. In 2005, Nokia announced a total of 56 new mobile devices in a wide variety of
designs and technologies for all segments and at all price points. We also made strong progress in
customizing mobile devices for operators.
Nokia periodically updates its segmentation of the consumer market, as we did in 2005 following
an extensive global consumer segmentation survey in 16 countries. From the findings we have
identified 11 unique consumer segments and have gained even more insight into what people
want and need from their mobile phones. We believe this knowledge will allow our business
groups to deliver products and solutions focused on meeting the demands of consumers in the
identified segments.
Mobile Phones
Mobile Phones connects people by providing expanding mobile voice and data capabilities across a
wide range of mobile devices. We seek to put consumers first in our product-creation process and
primarily target high-volume category sales. Mobile Phones currently offers mobile phones and
devices based on the following global cellular technologies: GSM/EDGE, 3G/WCDMA and CDMA.
In voice-centric and mainstream mobile phones, we believe that design, brand, ease of use and
price are our customers’ most important considerations. Increasingly, our product portfolio
includes new features and functionality designed to appeal to the mass market, such as megapixel
cameras, music players and advanced-quality color screens.
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