Professional Documents
Culture Documents
Technology
Strategy
Tero Ojanperä
Chief Technology Officer
Technology is
a key business enabler
for us connecting people
Cost
advantage
Mature Cost/
market volume/
Revenue- segments segmentation
generating
differentiation
Shaping the
future technology
and competitive
landscapes
New
Time to market/ market
Performance segments
3 © 2006 Nokia Nokia Technology Strategy
Technology contributes to our cost advantage
Normalized
operating
margin % • Platform approach,
30% reference architectures
• In-house chipset
development, incl.
20% IPR advantage
Nokia*
• Design for manufacturing
Samsung
10% Motorola
• Multi-sourcing
SEMC (interfaces)
LG
0%
Volume
(10)% market
0% 5% 10% 15% 20% 25% 30% 35% share %
Volume Market Share (%)
Industry cost curve – benefits of scale (market share %) to operating margin (%), 2005
Note: Industry cost curve derived from 2004-2005 reported quarterly results of top 6 manufacturers and Nokia estimates
* A large part of Nokia’s cost advantage stems from non-technical sources such as manufacturing, logistics, sales & marketing
Demand/ Customer
Supply interface Brand
chain
Product Selected
creation
investments
Make Broad
Technology ~15% involvement
development
and IPR Buy ~10% Specify
Value from
~75% mastering
the value chain,
architecture
Sourcing value and integration
5 5 © 2006
© 2006 Nokia
Nokia Nokia
Nokia Technology
Technology Strategy
Strategy /2006-05-05 / TO
We use a business driven, technology agnostic,
MOBILE TV
end-to-end approach EXAMPLE
File sharing,
Peer2peer,
Web Server
• 44 devices launched*
• 51% market share among converged devices**
Growth in Volume Growth in Enterprise Innovation
• Nokia
emerging alone cumulatively
growth shipped
richness 70 million
mobilityS60 devices***
potential
markets
• Smartphone market expected to exceed 250 M units 2008***
Source: *Nokia, September 2006, ** Canalys, July 2006, *** Nokia, Feb 2006
12 © 2006 Nokia Nokia Technology Strategy
Open Source makes sense
Cam
PA
RF
PA RF
Digi
BB
Engine BB
BT
< 2/3 size
PM Mem Digi PM
BT
BB
PM
Mem SIM
Mem Card
SIM
Mem Engine
Card component
count < 1/2
Seamless connectivity
Complexity hidden
from user
FM Blue-
MBMS UWB
Broadcasting radio tooth
DVB-H RFID/NFC
Proximity
“CNN or “Local connectivity,
Sugar Bowl info, commerce &
on the road" services "