Nokia 2011 Annual Report Download - page 16

• The Windows Phone platform is a more recent addition to the market focused on high-end
smartphones. While adoption is increasing and consumer awareness growing, it is still much
less widely used than the Android and iOS platforms. As with any new platform, we may not
succeed in developing it into a sufficiently attractive and competitive smartphone platform.
• The Windows Phone ecosystem may not attract developers who will contribute content and
applications, thus making our Nokia products with Windows Phone less appealing to
consumers.
• The Microsoft Windows Phone platform may not support the hardware configurations required
to succeed in becoming a sufficiently price competitive platform and may limit our ability to
develop a price competitive smartphone portfolio of products.
• We may not be able to introduce a compelling portfolio of Nokia products with Windows
Phone that include new hardware and design innovations. Additionally, we may not be able to
introduce functionalities such as location-based services and entertainment or otherwise
customize our Nokia products with Windows Phone in order to positively differentiate our
products from competitors’ products, both outside and within the Windows Phone ecosystem.
• We may face delays in bringing our Nokia products with Windows Phone to various markets
due to, for instance, manufacturing difficulties, delays in software and/or hardware
development or product or sales package customization to accommodate various markets or
operator requests.
• We may face issues in selecting, engaging or securing support from leading operators and
retailers for the initial launches and sales ramp-up of our Nokia products with Windows Phone
due to, for instance, inadequate sales incentives, training of sales personnel, marketing
support and experience in generating interest for a new and relatively unfamiliar Windows
Phone platform in an otherwise highly competitive market. Delayed or non-optimal initial
launches and sales ramp-up could result in diminished support from leading operators and
retailers and low consumer interest for subsequent launches of our Nokia products with
Windows Phone and may also adversely affect our Nokia brand generally and sales of our
other Nokia mobile products.
• Consumers may not prefer the Windows Phone user experience, interface or software
functionality.
• We may not succeed in creating a high level of consumer interest for our Nokia products with
Windows Phone, in converting interest for our Nokia products with Windows Phone to
purchase decisions or in making the Nokia brand more desirable than brands of our
competitors in smartphones.
• Microsoft may not be able to provide the software innovations and features we rely on for the
Windows Phone operating system in a timely manner, if at all.
• Our competitors may provide incentives to operators, retailers or developers that may make it
unattractive for them to support Nokia products with Windows Phone, or our competitors may
use various technical and commercial means to make it unattractive for consumers that
currently use another product to purchase Nokia products with Windows Phone.
• Our ongoing transition to the Windows Phone platform may prove to be too long to compete
effectively in the smartphone market longer-term given the ongoing developments of other
competing smartphone platforms.
• Our strategy for Nokia products with Windows Phone may erode our brand identity in markets
where we are traditionally strong and may not enhance our brand identity in markets where
we are weak. For example, our association with the Microsoft brand may not accelerate our
access to a broader market in the United States.
14