Finland-based Nokia Corp. recently underwent a restructuring that provides the company with a foundation to move its business to the next level of wireless communications, according to iSuppli Corp.
The restructuring, which segments Nokia into the three main business units of Mobile Solutions, Mobile Phones and Markets, will allow the telecommunications giant to create a portfolio of interoperable, multidevice products that use a common operating system.
Nokia’s new business segments will focus on a number of areas, including mobile computing, smart phones and the company’s Ovi Internet service for its Mobile Solutions unit; low-end and feature phones for its Mobile Phones unit; and sales and marketing, supply chain and procurement for its Markets unit.
The end-goal for Nokia is to defend its mobile handset and smart phone market share lead as well as develop its mobilized devices portfolio in response to paradigm shifts in its core markets. Nokia for the last two years has led both the smart phone and overall handset market with more than 30 percent share every quarter. And by restructuring for the future, it hopes to address and fend off intense competition from companies making similar moves to this interoperable product mix.
The Art of Interoperability
With these business units in place, along with a recent Intel Corp. partnership earlier this year, iSuppli expects Nokia to develop devices beyond smart phones—possibly their own tablet device—that will help build upon the strategy of offering multiple devices based on a common operating system—in this case, Meego.
The type of portfolio that Nokia plans to develop is a new paradigm emerging in the mobile devices arena, aimed at providing both mobile computing and smart phone devices that are based on the same software/ development platform. In effect, this opens the way for consumers to potentially interact with services, content and applications seamlessly across multiple devices.
The actual reorganization of Nokia won’t directly impact the mobile handset industry as a whole, but presumably will help the company to focus on interoperable devices for both the mobile computing and the mobile handset space. Perhaps, more importantly, this reorganization will enable Nokia to address similar capabilities by companies such as Apple Inc. and Hewlett-Packard/Palm to realize seamless, fully mobile connectivity and content consumption. As this is the next step in the evolution of the wireless communications market, Nokia is positioning itself to take advantage of the new paradigm.
Labels: Nokia
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