Nokia 2009 Annual Report Download - page 94

Results by Segments
Devices & Services
The following table sets forth our estimates for industry mobile device volumes and yearonyear
growth rate by geographic area for the fiscal years 2009 and 2008. These estimates and the following
discussion are based on our definition of the industry mobile device market used in 2009 and 2008.
Year Ended
December 31,
2009
(1)
Change
2008 to 2009
Year Ended
December 31,
2008
(Units in millions, except percentage data)
Europe .......................................... 252 (10)% 281
Middle East & Africa ................................ 137 (8)% 149
Greater China ..................................... 188 3% 183
AsiaPacific. . ..................................... 275 (3)% 284
North America .................................... 172 (3)% 178
Latin America..................................... 115 (17)% 139
Total ............................................ 1140 (6)% 1213
(1)
Beginning in 2010, we are revising our definition of the industry mobile device market that we
use to estimate industry volumes. This is due to improved measurement processes and tools that
enable us to have better visibility to estimate the number of mobile devices sold by certain new
entrants in the global mobile device market. These include vendors of legitimate, as well as
unlicensed and counterfeit, products with manufacturing facilities primarily centered around
certain locations in Asia and other emerging markets. For comparative purposes only going
forward, applying the revised definition and improved measurement processes and tools that we
are using beginning in 2010 retrospectively to 2009, we estimate that industry mobile device
volumes in 2009 would have been 1.26 billion units. We are not able to apply our revised
definition and improved measurement processes and tools retrospectively to our estimated
industry mobile device volumes in 2008 due to lack of visibility and data. The industry mobile
device volumes estimated for 2008 are not comparable with the industry mobile device volumes
estimates based on the revised definition.
According to our estimates, in 2009 industry mobile device volumes, based on the 2009 definition,
decreased by 6% to 1.14 billion units, compared with an estimated 1.21 billion units in 2008. The
global device market was negatively impacted in 2009 by the difficult global economic conditions,
including weaker consumer and corporate spending, constrained credit availability and currency
market volatility. The demand environment for mobile devices improved during the latter part of the
year as the global economy started to show initial signs of recovery.
We estimate that emerging markets accounted for approximately 63% of industry mobile device
volumes in 2009, based on the 2009 definition, unchanged from 2008. The devaluation of emerging
market currencies impacted the purchasing power of consumers in emerging markets, where Nokia’s
market share is strong. The entrylevel device market (devices priced at 50 euro or under) continued
to be one of the fastest growing segments for the market. This was particularly the case in 2009
where we estimate this part of the market represented approximately 48% of total industry volumes
compared to 44% in 2008. We estimate the converged mobile device market was approximately
176 million units globally in 2009, growing from approximately 161 million units in 2008, despite of
the decline in total industry mobile device volumes based on the 2009 definition.
At the end of 2009, we estimate that there were approximately 4.6 billion mobile subscriptions
globally, representing approximately 67% global penetration. This is compared to approximately
3.9 billion mobile subscribers at the end of 2008 and approximately 58% global penetration.
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