Nokia 2011 Annual Report Download - page 51

• Mobile communications evolved rapidly during the 1990s and early 2000s, creating new
opportunities for devices in entertainment and enterprise use. This trend—where mobile
devices increasingly support the features of single-purposed product categories such as
music players, cameras, pocketable computers and gaming consoles—is often referred to as
digital convergence.
• In recent years, we have supported the development of our services and software capabilities
with acquisitions of key technologies, content and expertise. For example, in 2008 we acquired
NAVTEQ, a leading provider of comprehensive digital map information and related location-
based content and services. Now as part of our Location & Commerce business, NAVTEQ
continues to play a pivotal role in the development of our location-based services offering both
in terms of its provision of content and as a business-to-business provider of map data. More
recently, acquisitions have included Novarra, whose technology has formed the basis of a new,
more powerful mobile browser available for our latest feature phones.
• As part of our efforts to concentrate on services that we believe are core to our offering, we
have also made disposals, including the sale in 2010 of our wireless modem business to
Renesas Electronics Corporation as part of a strategic business alliance between the two
companies to develop modem technologies for HSPA+/LTE (Evolved High-Speed Packet
Access / Long-Term Evolution) and its evolution.
• In early 2011, we announced and began implementing a new strategy for our Devices &
Services business, including our partnership with Microsoft to build a new global mobile
ecosystem with Windows Phone serving as our primary smartphone platform and changes to
our leadership team and operational structure, with the aim of accelerating speed of execution
in the intensely competitive mobile products market.
• Nokia Siemens Networks began operations on April 1, 2007. The company, jointly owned by
Nokia and Siemens AG and consolidated by Nokia, combined Nokia’s networks business and
Siemens’ carrier-related operations for fixed and mobile networks. In network infrastructure,
Nokia Siemens Networks acquired the majority of the wireless network infrastructure assets of
Motorola Solutions in April 2011.
• In November 2011, Nokia Siemens Networks announced and began implementing a new
strategy and restructuring plan to focus on mobile broadband and services.
Organizational Structure and Reportable Segments
We have three businesses: Devices & Services, Location & Commerce and Nokia Siemens Networks,
and four operating and reportable segments for financial reporting purposes: Smart Devices and
Mobile Phones within our Devices & Services business, Location & Commerce and Nokia Siemens
Networks.
We adopted our current operational structure during 2011. Smart Devices and Mobile Phones focus
on the areas of smartphones and mass market feature phones, respectively, while Location &
Commerce, which was formed by combining NAVTEQ with our Devices & Services social location
services operations, focuses on the development of location-based services and local commerce.
Each unit has profit-and-loss responsibility and end-to-end accountability for the full consumer
experience, including product development, product management and product marketing.
Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia, is one of
the leading global providers of telecommunications infrastructure hardware, software and services.
Focusing on innovation and sustainability, Nokia Siemens Networks currently provides a complete
portfolio of mobile, fixed and converged network technology, as well as professional services including
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