Nokia 2012 Annual Report Download - page 61

HERE (formerly Location & Commerce)
Market Overview
The market for location services has undergone significant change in recent years. Access to location
services has broadened from personal navigation devices (PNDs)—such as those in automobiles—
and personal computers to mobile devices. Location is now being embedded into almost every part of
the mobile experience.
As the race to expand and perfect the delivery of contextual information continues, mobile platform
owners have also been increasing investment in geo-location related services to provide relevance,
rich information about a location and to help people orient around as well as to and from a location.
Mapping is the key underlying user interface to make sense of location services. Nokia and Google are
among companies which have been investing in this area for a number of years.
Segment Overview
Our HERE business, which though 2012 operated under the Location & Commerce name, develops a
range of location-based products and services for consumers, as well as content and platform services
for device manufacturers, automobile manufacturers, application developers, Internet services
providers, merchants and advertisers. The business has profit-and-loss responsibility and end-to-end
accountability for the full consumer experience.
HERE was formed during 2011 through the combination of NAVTEQ, which we acquired in July 2008,
with our Devices & Services social location services operations. In November 2012, we introduced a
new brand, HERE, for our location-based products and services and have since been adopting the
HERE brand across the portfolio. As of January 1, 2013, HERE is the new name of our former
Location & Commerce business and reportable segment.
HERE is developing location-based offerings in support of our strategic goals in mobile devices, as well
as developing a portfolio of products for the broader Internet ecosystem, including products for Nokia’s
direct competitors. The business aims to positively differentiate its digital map data and location-based
offerings from those of our competitors and create competitive business models for our customers. In
the development of the Windows Phone ecosystem, we and Microsoft are bringing together our
complementary assets in search, with Nokia’s maps offering at the heart of key Microsoft assets such
as Bing and AdCenter to form a local search and advertising experience.
HERE’s resources are primarily focused on the development of content, the platform and applications.
Content. The development of content involves the mapping of the physical world and places such as
roads and points of interest, as well as the collection of activity data generated and authorized for use
by our users. To further enhance our maps, we are building 3D maps and in late 2012 we further
enhanced our 3D map-making capabilities with the acquisition of earthmine, a California-based
company whose reality capture and processing technologies will become integral parts of the 3D map
making capabilities of HERE.
During 2012, HERE continued to build partnerships with a number of major industry players,
particularly in the area of automotive-grade maps content and solutions. We are providing content to
partners including Aol, Audi, Bing Maps, BMW, Chrysler, ESRI, Fiat, Ford, Garmin, General Motors,
Hyundai, Kia, Mercedes, Nissan, Oracle, Pioneer, PSA, Renault, Toyota and Volkswagen and Yahoo!
The platform. The platform, also known in 2012 as the Nokia Location Platform (NLP) and now as the
HERE Location Platform, includes the underlying infrastructure of the map and the development tools
for Nokia and others to create on top of it. During 2012, among others, Amazon became a HERE
Location Platform licensee for maps and geocoding and Ford’s research organization selected the
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