Nokia 2012 Annual Report Download - page 56

to ensure that each research and development site has a clear focus and that there is greater
co-location of our teams. The major Mobile Phones research and development sites are in Beijing in
China and Oulu in Finland.
Technology Research
Nokia has a long and rich history of innovation and technology leadership, and its innovations through
technology research have transformed the lives of billions of people around the world.
Longer-term, more exploratory technology development comes under the scope of Nokia’s CTO
(Chief Technology Office) organization, which also includes Nokia’s research unit, the Nokia Research
Center, as well as the compatibility and industrial collaboration unit. The teams in these units explore
next-generation mobile technology innovations in areas such as sensor technology, materials, imaging
and connectivity and set the long-term research agenda for Nokia.
The CTO organization looks beyond the technology development of current products, services,
platforms and technologies to the creation of assets and competencies in technology areas that we
believe will be vital to our future success. Through this work, the CTO organization is a major
contributor to Nokia’s standard essential patents. For example, inventions have been presented in the
latest developments in 4G LTE wireless communication technologies, or in a new sharing technology
called Slam for quick and easy photo sharing using Bluetooth at close proximity.
The CTO organization operates in a number of locations, including sites in Finland, the United States,
the United Kingdom and China. One of our key mode of operations for our research is open
innovations and it collaborates with tens of universities and research institutes around the world.
The costs related to our long-term technology research related activities are reported under Devices &
Services Other.
Sales and marketing
Nokia has a large distribution network, with hundreds of thousands of points of sale globally alongside
our own online retailing presence. We have a significant distribution and care network, particularly in
China, India, and the Middle East and Africa.
We derive our net sales of mobile devices primarily from sales to mobile network operators,
distributors, independent retailers, corporate customers and consumers. However, the total device
volume that goes through each channel varies by region. In 2012, sales in North America and Latin
America were predominantly to operator customers, sales in Asia-Pacific, China and Middle East and
Africa were predominantly to distributors, and sales in Europe were more evenly distributed between
operators and distributors.
Our marketing activities play a fundamental role in our effort to bring people great mobile products. Our
activities are designed to create loyalty, enhance the Nokia brand and drive more sales. In our
marketing, we focus on expanding awareness of the key points of differentiation in our products and
services, such as the imaging capabilities of our high-end smartphones or the robust quality of our
most affordable feature phones. During 2012, we continued to shift towards a single brand visual
identity in our marketing, presenting a clear, simple and coherent image of Nokia. We also continued to
expand our digital marketing efforts, including engaging consumers through our own social media
channels, including Nokia Conversations, which is among the most popular company blogs. We are
among the top brands in the world according to the Interbrand annual rating of 2012 Best Global
Brands.
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