Three billion cellphone users by 2008 says Nokia

Stuart Corner
Monday, 05 December 2005 01:24

IT Industry - Strategy

Nokia is predicting that the number of mobile subscriptions will surpass three billion in 2008, rather than in 2010 as it predicted in February this year.

Nokia predicts that, in 2006, the number of mobile devices manufactured worldwide will be up 10 percent on the 780 million units it estimates will be produced in 2005. Despite falling prices it expect the mobile device market to grow in value in 2006. There will be "slight to moderate growth in the mobile infrastructure market in 2006".

The predictions were announced at the annual Nokia Capital Market Days in New York where Nokia presented its expectations for overall industry developments and set out its targets for the next one to two years.
 
Nokia's financial targets for the next one to two years are:
- operating margin target remains at 17 percent;
- an operating margin of 17 percent-18 percent for mobile phones and multimedia devices combined;
- an infrastructure operating margin of 13 percent, rather than 14 percent as stated last year;
- by the end of 2006 Nokia plans to reduce overall R&D expenditure to 9 percent - 10 percent of net sales; reduce Nokia mobile device R&D expenditure to 8 percent of net sales; and reduce Nokia infrastructure R&D expenditure to 14 percent of net sales.