Nokia restructuring to focus on devices, services and software

Nokia restructuring to focus on devices, services and software
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First Published: Wed, Jun 20 2007. 06 05 PM IST
Updated: Wed, Jun 20 2007. 06 05 PM IST
AP
Helsinki: Nokia Corp. unveiled plans to reorganize its corporate structure next year, saying the move would help it take advantage of new opportunities in the convergence of mobile communications and Internet technologies.
The world’s largest mobile phone maker said the group will be reordered into three units; devices, which will make the company’s handsets; services and software, which will offer consumer Internet services and products for the enterprise market; and markets, which will manage the company’s supply chain, sales and marketing.
Nokia said it expects the new organization to better manage its range of devices, speed up bringing new products to market, and increase marketing efficiency.
“The convergence of the mobile communications and Internet industries is opening up new growth opportunities for us, both in the devices business as well as in consumer Internet services and enterprise solutions,” Chief Executive Olli-Pekka Kallasvuo said. “We believe this new organization can capitalize on these opportunities while allowing us to increase the effectiveness of our investments and the efficiency of our operations.”
Following the announcement, Nokia’s stock rose 1.5% in Helsinki. Kai Oistamo, chief of Nokia’s mobile phones business group will head the devices unit, while the services and software division will be led by Niklas Savander, who now heads the technology platforms department. Anssi Vanjoki, currently head of multimedia business, will lead the markets division.
The company which is based in Espoo near the Finnish capital, has sales in 130 countries and employs 68,000 people. It will have two reportable segments; devices and services and Nokia Siemens Networks.
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First Published: Wed, Jun 20 2007. 06 05 PM IST
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