Nokia 2012 Annual Report Download - page 55

Mobile Phones
Our Mobile Phones business unit focuses on the area of mass market entry and feature phones as well
as affordable smartphones. The unit has profit-and-loss responsibility and end-to-end accountability for
the full consumer experience, including development, management and marketing of products, services
and applications. During 2012, our Mobile Phones unit shipped approximately 300 million devices.
In Mobile Phones, our strategy focuses on leveraging our innovation and strength in growth markets to
provide people with an affordable Internet experience on their mobile device. Our Mobile Phones team
creates products for three consumer segments: First, Feature and Smart.
•First covers very affordable products such as the Nokia 101, a dual SIM music phone which
costs about EUR 25, excluding taxes and subsidies. During the beginning of 2013, we have
also introduced the Nokia 105, the most affordable mobile phone in the range, offering a
bright color screen, FM radio, long battery life and available in different colors for EUR 15,
excluding taxes and subsidies. The target consumer for our First products is someone
seeking their first mobile experience, an ability to use their phone as a music player, a durable
and robust product, good battery life and for whom price is a critical factor. Almost 90% of the
world’s population lives within range of a mobile signal, but there are many people who do not
yet own a mobile device.
•Feature covers products, such as the Nokia 206, which costs approximately EUR 46,
excluding taxes and subsidies. The target consumer for our Feature products is someone
seeking a product that offers good quality staple features, good battery life and easy and
affordable access to the Internet, particularly to Facebook and Twitter. Our latest products in
this segment uses a powerful new cloud-enabled browser which compresses data and can
thus reduce the cost and increase the speed of browsing the web, giving peace of mind to
consumers who do not wish to purchase a data plan or exceed the limit on their data plan.
Many people buying our Feature products are using them to access the Internet for the first
time. Additionally, they are seeking a product that is durable and robust and which brings
them the benefit of Nokia’s expertise and technologies in call quality, reception and data
connectivity.
•Smart covers products such as the Nokia Asha 311, a smartphone with a full touch, capacitive
display, a fluid ‘swipe’ user interface, a power processor, 3.2 megapixel camera and which
costs EUR 92, excluding taxes and subsidies. The target consumer for our Smart products is
someone seeking an affordable smartphone whose hardware, software and services are
optimized for—and not compromised by—low price points. Our Smart products, besides being
very functional, also offer some distinctive and stylish designs that share similarities to those
in our Lumia portfolio of smartphones.
While Mobile Phones targets consumers in three segments, the whole portfolio has, over time, become
smarter and richer in terms of experiences and features. In late 2011, we introduced the Asha product
name for certain models which provide smartphone-like experiences. During 2012, we continued to
support the Asha range with technological and design innovations, including launching the first full
touch models. They also offer a fluid ‘swipe’ user interface and an open environment for third-party
application development —characteristics which have helped earn the complete Asha full touch range
full smartphone classification from global market research companies and analysts.
Mobile Phones has dedicated research and development teams addressing our short to medium-term
needs in product and services development. During 2011 and 2012, we made changes to our research
and development operations for Mobile Phones to reflect and support our strategy. These changes
included, in 2012, the closure of our facility in Ulm, Germany. Over the last two years, we have worked
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