Nokia 2012 Annual Report Download - page 14

smartphone ecosystem with another partner or join another competitive smartphone
ecosystem in a timely or economically profitable manner.
• Other competitive major smartphone ecosystems, primarily Google’s Android and Apple’s
iOS, have advantages that may be difficult for the Windows Phone ecosystem to overcome,
such as first-mover advantage, momentum, a larger share of the smartphone market,
engagement by developers, mobile operators and consumers and brand preference, and their
advantages may become greater over time.
• We may not be able to develop sufficient quantities of high-quality differentiated Nokia
products with Windows Phone in order to achieve the scale needed for a competitive global
ecosystem in a timely manner, or at all.
• Applicable developer tools for the Windows Phone platform may not gain needed traction or
acceptance in the market, may be introduced late, or when introduced, may not offer
technologies that developers are willing to use.
• We may not be able to provide sufficient opportunities to innovate and customize on the
Windows Phone platform in order to attract developers and other ecosystem participants
seeking to differentiate their offerings on our smartphones from those of our competitors.
• Our competitors may use various technical and commercial means to make the Windows
Phone ecosystem unattractive compared to other ecosystems, including for instance
hindering application development, not providing tools to allow applications to be developed to
industry standard or not allowing certain applications to work or work efficiently on the
Windows Phone platform.
• We may not succeed in rapidly expanding the Windows Phone platform and related
ecosystem to more affordable smartphones, limiting the expansion of this ecosystem.
• The global ecosystem for the Windows Phone platform may not be flexible enough to allow
local ecosystems to develop around and in connection with it. For instance, Microsoft, us and
other participants in the Windows Phone ecosystem may not succeed in innovating and
developing sufficiently locally relevant services, applications and content in a speedy and
cost-efficient manner to attract and retain consumers in multiple markets with divergent local
needs and preferences.
• The Windows Phone ecosystem is relatively small, and thus it may not be compelling for
hardware and software suppliers and developers, which may for instance lead to our reliance
on a limited number of suppliers, later availability of the latest innovations and increased cost
of components and software.
• Mobile devices are increasingly used with other technical appliances, for instance speakers
and car audio systems or have accessories and gadgets that can be used in conjunction with
the mobile device. As the Windows Phone ecosystem is relatively small, it may not be
compelling for third parties to design such technical appliances, accessories or gadgets to a
similar extent as with other ecosystems.
• We may not succeed in creating business models that provide value to other participants in
the Windows Phone ecosystem, including ourselves.
• We may not be able to change our mode of working or culture sufficiently to collaborate
effectively and efficiently both internally and externally with a large community of partners.
• Consumers may be reluctant to provide personal data to us as a result of our partnership with
Microsoft, which would hamper the success of the Windows Phone ecosystem.
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