Nokia 2012 Annual Report Download - page 53

A growing number of developers are writing Java-based applications for Series 40 which are available
through the Nokia Store. Another ecosystem is the one which is based around mobile solutions
chipsets from low-cost reference design chipset manufacturers which have enabled the very rapid and
low-cost production of feature phones by numerous manufacturers especially in China and India, which
are making the business landscape more competitive, as well as bringing some locally relevant
innovations to market.
Segment overview
Nokia’s strategy to generate sustainable long-term growth is centered on the creation of connected
products that sense the world. We create products for virtually every demographic and every
geography worldwide. Our overarching strategy in Devices & Services, and supported by HERE, has
three core elements: (i) to win in smartphones; (ii) to connect the “next billion” to the Internet and
information, especially in key emerging markets; and (iii) to continue to invest in future disruptions
through long-term exploratory research into the future of mobility and computing.
Smart Devices
Our Smart Devices business unit focuses on our most advanced products, including smartphones
powered by the Windows Phone operating system. The business 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’s portfolio of smartphones covers price points
ranging from around EUR 140 to more than EUR 500, excluding taxes and subsidies. During 2012, our
Smart Devices unit shipped approximately 35 million smartphones.
Smart Devices makes products based on the Windows Phone operating system, which is developed
by Microsoft. In 2011, we commenced our partnership with Microsoft that brings together our
respective complementary assets and expertise to build a new global mobile ecosystem for
smartphones. The goal for both partners is that by bringing together our complementary assets in
software, search, maps, location-based services, e-commerce, social networking, entertainment,
unified communications and advertising, we can jointly create an entirely new consumer proposition.
Since entering into the partnership with Microsoft, we have brought to market a number of Windows
Phone-based devices under the Lumia name, with the first wave of devices based on an iteration of the
Windows Phone operating system called Windows Phone 7. In late 2012, we introduced our first
smartphones based on Windows Phone 8, which, for the first time, is based on many of the same core
technologies as its sister software Windows 8, which is used to power personal computers and tablets.
With Windows Phone 8 and Windows 8 sharing many of the same core technologies, applications can
more easily be ported between the two platforms compared to previous versions. We believe this will
attract more developers and consumers who want a similar experience across their personal computer,
tablet and smartphone.
Our first Windows Phone 8 products, introduced in late 2012, are the Nokia Lumia 620, a compact,
colorful smartphone that is also the most affordable of the range; the Lumia 820, which brings high-end
smartphone innovation like wireless charging, super-sensitive touch displays and new augmented
reality experiences to a midrange price point; and the Lumia 920, the flagship Windows Phone 8
smartphone and our leading imaging device, bringing optical image stabilization to a Nokia product for
the first time. During the beginning of 2013, we have also introduced the Lumia 520, the most
affordable of the range, and the Lumia 720, which delivers high-end camera performance at a
mid-range price point. All these products also bring consumers several additional benefits offered by
the Windows Phone 8 software, including:
• multi-core processors, NFC (near field communication) technology, and high screen
resolutions;
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