Nokia 2011 Annual Report Download - page 60

The following table shows our major manufacturing facilities as of December 31, 2011, with the
expected production focus following the implementation of the planned changes we announced in 2011
and early 2012.
Country Location Product focus Production focus
BRAZIL Manaus Feature phones and Smartphones Assembly as well as
software and sales
package customization
CHINA Beijing Smartphones Assembly as well as
software and sales
package customization
Dongguan Feature phones Assembly as well as
software and sales
package customization
FINLAND Salo Smartphones Software and sales
package customization
HUNGARY Komárom Smartphones Software and sales
package customization
INDIA Chennai Feature phones Assembly as well as
software and sales
package customization
MEXÌCO Reynosa Smartphones Software and sales
package customization
REPUBLIC OF
KOREA
Masan Smartphones Assembly as well as
software and sales
package customization
In March 2011, we announced plans to establish a new manufacturing facility near Hanoi in northern
Vietnam, with a targeted opening in early 2013. The new manufacturing site is being established to
meet the growth in demand for feature phones.
Our manufacturing facilities form an integrated global production network, giving us flexibility to adjust
our production volumes to fluctuations in market demand in different regions. Each of our plants
employs state-of-the-art technology and is highly automated. A significant part of the production of a
mobile device includes software customization – or the integration of software and content – a process
which is usually done according to the specific requirements of our customers and the needs of
individual markets.
Our mobile device manufacturing and logistics are complex and require advanced and costly
equipment. From time to time, we outsource the manufacturing of certain aspects of certain products
and components to adjust our production to demand fluctuations, as well as to benefit from expertise
others have in the production of certain mobile technologies. For certain of our devices, we use
contract manufacturers to produce the entire product. During 2011, the vast majority of our
manufacturing needs were met by our own production network.
Strategic Sourcing and Partnering
In line with industry practice, Devices & Services sources components for our mobile devices from a
global network of suppliers. Those components include electronic components, such as chipsets,
integrated circuits, microprocessors, standard components, printed wiring boards, sensors, memory
devices, cameras, audio components, displays, batteries and chargers, and mechanical components,
such as covers, connectors, key mats, antennas and mechanisms. Such hardware components
account for the majority of our overall spending on sourcing.
58