Nokia 2008 Annual Report Download - page 42

the consumer electronics industry. Our competitors today include, but are not limited to, Apple,
Garmin, Google, Hewlett Packard, HTC, Huawei, Palm, Research in Motion, TomTom and ZTE. The
mobile device industry may continue to attract new entrants.
As a result of developments in our industry, including the convergence of mobile device technology
with the Internet, we also face competition from companies historically focused on related industries,
such as Internetbased products and services, consumer electronics manufacturers, network operators
and business device and solution providers, some of which have more scale and experience and a
stronger market presence in certain market segments, such as Internet services. Many mobile device
manufacturers—both traditional participants and new entrants—have expanded into Internet services
and enterprise software in an effort to differentiate themselves from competitors. Mobile network
operators are also seeking to provide services to consumers for their own branded devices, including
both Nokia devices and devices from other manufacturers. We also face competition from consumer
Internet service providers, which may provide competing software and services for free.
Further, as the industry now includes increasing numbers of participants that provide specific
hardware and software layers within products and solutions, we face competition at the level of
these layers rather than solely at the level of complete products and solutions. An example of such a
layer is operating system software, with competitors including, but not limited to, Apple, Google,
Microsoft, Palm and Research in Motion. The competition also includes open source software
initiatives, such as the Open Handset Alliance, which is developing the Android mobile device
software platform and operating system, and LiMo Foundation, which is developing the LiMo mobile
device operating system. Mobile devices are, to an increasing extent, based on various technology
platforms, which brings the competition to the technology platform layer and changes the barriers of
entry for new market entrants.
Also, significant changes in exchange rates may also impact our competitive position through their
impact on our competitors. In 2008, the most notable of such impacts was the depreciation of the
Korean won by 29% against the US dollar and 27% against the euro, which benefitted our Korea
based competitors.
Due to the intensity, complexity and diversity of the competition overall, the competitive landscape in
our industry or in specific industry segments can change very rapidly. As the parameters of
competition are less firmly established than in other industries where the competitive landscape does
not change greatly from year to year, it is difficult to predict how the competitive landscape of the
mobile device industry will develop in the future.
NAVTEQ
Overview
In July 2008, we acquired NAVTEQ Corporation, a leading provider of comprehensive digital map
information and related locationbased content and services for automotive navigation systems,
mobile navigation devices, Internetbased mapping applications, and government and business
solutions. By acquiring NAVTEQ, we aim to ensure the continued development of our context and
geographical services through Nokia Maps as we move from simple navigation to a broader range of
locationbased services, such as pedestrian navigation and targeted advertising. At the same time,
NAVTEQ also continues to develop its expertise in the navigation industry, service its strong customer
base and invest in the further development of its industryleading map data, locationbased services
and technology platform. As of December 31, 2008, NAVTEQ had 4 028 employees in 35 countries.
Highlights in 2008 after the completion of our acquisition of NAVTEQ included the following:
• NAVTEQ announced an industry strategy for mapenhanced ADAS (advanced driver assistance
systems) using the MapEnhanced Positioning Engine (MPE).
• NAVTEQ started providing both NAVTEQ Traffic RDS delivery service and NAVTEQ interactive
advertising services for multiple Garmin devices (the nuvi 755T and 775T and nuvi 2x5 family).
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