Magazine

Table: Neo Nokia


Effective May 1, the No. 1 mobile phone maker has reorganized its handset division into nine profit-and-loss centers, each with its own research and development and marketing.

TIME-DIVISION MULTIPLE ACCESS UNIT

Goal is to milk Nokia's 50%-plus share of a declining market. TDMA phones will remain in demand for years in places like Latin America, but Nokia won't invest in the outmoded digital phone standard.

CODE-DIVISION MULTIPLE ACCESS UNIT

Will work to boost Nokia's paltry 9% market share in CDMA phones. The technology is sweeping Asia and lies at the heart of all third-generation, or 3G, mobile systems.

MOBILE PHONES UNIT

Will focus on the heart of Nokia's business: High-end GSM phones and their successors. Unit could generate more than half of the company's total operating profits in future years.

MOBILE ENTRY PRODUCTS UNIT

Will produce cheap phones for developing countries such as China, India, and Russia. Will also work with local mobile operators to deliver service at lower prices.

IMAGING UNIT

Will soon launch the highly anticipated 7650 camera phone, featuring a color screen, snazzy graphical software, and a tucked-away keypad.

ENTERTAINMENT AND MEDIA UNIT

Its first order of business is marketing the 5510, a hybrid messaging phone and music player that hasn't caught on.

BUSINESS APPLICATIONS UNIT

Will pitch everything from smart phones to personal organizers at corporate customers. The 9210/9290 Communicator leads off the lineup.

MOBILE ENHANCEMENTS UNIT

Will hawk accessories ranging from cordless headsets to Star Wars-themed phone faceplates.

MOBILE SERVICES UNIT

Will run Club Nokia. The online service, a clearinghouse for tech support information, downloadable ring tones, and Java applications, is popular with customers and helps cement brand loyalty.

Data: Company reports, Bear, Stearns & Co.


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