Nokia 2009 Annual Report Download - page 41

plan to accelerate industry innovation and reduce timetomarket for a range of new Internetbased
applications and services and exciting user experiences. MeeGobased devices from Nokia and other
manufacturers are expected to be launched later in 2010. As MeeGo will use Qt as its application
framework, developers will be able to write applications using Qt that will be portable across Nokia’s
devices based on MeeGo as well as our smartphones based on Symbian, increasing the opportunity
for them to bring their creations to a larger audience. The plan to merge Maemo and Moblin follows
Nokia and Intel’s initial announcement during June 2009 that they are working on developing a new
class of device and chipset architectures for future mobile computing devices.
During 2009, Nokia widened its portfolio to include Nokia Booklet 3G, a new Windows 7based mini
laptop, built for allday mobility and connectivity. Encased in an ultraportable aluminum chassis, the
Nokia Booklet 3G runs for up to 12 hours on a single charge and has a broad range of connectivity
options.
Sales and Marketing
Sales
Nokia has the industry’s largest distribution network, with over 650 000 points of sale globally
alongside our own online retailing presence. Compared to our competitors, we have a substantially
larger distribution and care network, particularly in China, India and the Middle East and Africa.
Nokia derives its Devices & Services net sales primarily from sales to mobile network operators,
distributors, independent retailers, corporate customers and consumers. However, the total device
volume that goes through each channel varies by region. In 2009, sales in North America and Latin
America were predominantly to operator customers, sales in AsiaPacific, China and Middle East and
Africa were predominantly to distributors, and sales in Europe were more evenly distributed between
operators and distributors.
Marketing
Devices & Services’ marketing activities are designed to develop and enhance the Nokia brand and
increase sales. The Interbrand annual rating of 2009 Best Global Brands positioned Nokia as the fifth
mostvalued brand in the world, for the third consecutive year.
Our marketing activities are evolving in different ways. First, an increasing portion of our overall
marketing spend is aimed at boosting revenues beyond the initial point of purchase, for instance by
advertising the additional value consumers can derive from their Nokia mobile device—such as
services, including applications and content. We do this by, for instance, generating increased direct
dialogue with consumers to encourage them to activate their services, subscribe to new services and
use new features and accessories. Secondly, digital marketing is accounting for a larger share of our
overall marketing mix as consumption of media has shifted from traditional broadcast media towards
the Internet. As part of this shift, we are also increasingly engaging consumers through our own
media webbased channels. Thirdly, to drive marketing efficiency, we are focusing on fewer but
bigger campaigns, organized around key themes, such as messaging and navigation, as opposed to
single products.
Production
We operated ten manufacturing facilities for the production of mobile devices in nine countries
around the world for the production of mobile devices as of December 31, 2009. Production at our
plant in Salo, Finland, our plant in Beijing, China and our plant in Masan, South Korea is geared
towards highvalue, lowtomedium volume mobile devices. Vertu, our line of luxury mobile devices,
is served by our manufacturing facility in the United Kingdom. Our six other production facilities—
Komárom in Hungary, Cluj in Romania, Dongguan in China, Chennai in India, Manaus in Brazil and
Reynosa in Mexico—concentrate on the production of high volume, costfocused mobile devices. Our
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