Nokia 2012 Annual Report Download - page 25

• Microsoft may make strategic decisions or changes that may be detrimental to us. For
example, in addition to the Surface tablet, Microsoft may broaden its strategy to sell other
mobile devices under its own brand, including smartphones. This could lead Microsoft to
focus more on their own devices and less on mobile devices of other manufacturers that
operate on the Windows Phone platform, including Nokia.
• We may not be able to sufficiently influence Microsoft in bringing the features or functionalities
for the Windows Phone platform that we deem most important, or Microsoft may otherwise
focus on other areas of its business leading to reduced resources devoted to the Windows
Phone platform or failures to implement features or functionalities. This may be heightened if
our position in the partnership deteriorates, for instance through other companies using
leverage to influence Microsoft, or if Microsoft chooses to develop its own mobile devices,
including smartphones, or if Microsoft otherwise develops interests that are contrary to ours.
• The implementation and ongoing fostering and development of the Microsoft partnership will
require significant time, attention and resources of our senior management and others within
the organization potentially diverting their attention from other aspects of our business.
• The ongoing fostering and development of the Microsoft partnership may cause disruption
and dissatisfaction among employees reducing their motivation, morale and productivity,
causing inefficiencies and other problems across the organization and leading to the loss of
key personnel and the related costs in dealing with such matters.
• We may not have or be able to recruit, retain and motivate appropriately skilled employees to
implement successfully our strategies in relation to the Windows Phone platform and to work
effectively and efficiently with Microsoft and the related ecosystem.
• New business models require access and sometimes possession of consumer data. If we do
not have such access within our own control, this may hinder our ability to pursue such
opportunities.
• We may be required or choose to share with Microsoft personal or consumer data that has
been made available to us, which could increase the risk of loss, improper disclosure or
leakage of such personal or consumer data or create negative perceptions about our ability to
maintain the confidentiality of such data.
• New sources of revenue expected to be generated from the Microsoft partnership, such as
leveraging the Microsoft advertising assets to build and achieve the required scale for a
Nokia-based online advertising platform on our smartphones and increased monetization
opportunities for us in services, may not materialize as expected, or at all.
• We may not be able to change our mode of working or culture to enable us to work effectively
and efficiently with Microsoft in order to realize the stated benefits of the partnership in a
timely manner.
• The implementation and ongoing fostering and development of the Microsoft partnership may
cause dissatisfaction and adversely affect the terms on which we do business with our other
partners, including mobile operators, developers, distributors and suppliers, or foreclose the
ability to do business with new such partners.
We may not be able to effectively and smoothly implement the planned changes in operational
structure or achieve targeted efficiencies and reductions in operating expenses and we may not
be able to retain, motivate, develop and recruit appropriately skilled employees, which may
hamper our ability to implement our strategies.
We have announced a number of changes to our Devices & Services and location-based strategy and
operational structure during 2011 and 2012. The implementation of these strategies and changes in
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