Nokia re-organises to face challenges of evolving handset market

Stuart Corner
Wednesday, 12 May 2010 12:28

IT Industry - Strategy

Nokia has re-organised its mobile phone business in a bid to better exploit the rapid growth of smartphones and the challenges from new vendors and technologies in the smartphones market.

It will introduce a simplified company structure for its devices and services business comprised of three units: Mobile Solutions, Mobile Phones, and Markets that will see its mobile computer and smartphone operations split off from more basic devices, now dubbed "feature rich".

The new structure, which comes into effect on July, "aims to accelerate product innovation and software execution in line with the company's goals of integrating content, applications and services into its mobile computer, smartphone and mobile phone portfolio," Nokia said.

The new Mobile Solutions unit will concentrate on the company's high-end mobile computer and smartphone portfolio, based on the MeeGo platform and the open source Symbian software platform. Nokia says these devices will be tightly integrated with its Internet services to increase the combined value for consumers. (MeeGo is the result of a merger of the Linux-based Moblin developed by Intel and Nokia's Maemo software.)

The Mobile Phones unit will "focus on maintaining Nokia's leadership in the feature-rich mobile phone market and driving the direction of Series 40, the world's largest mobile operating system."

Nokia says that both the Mobile Solutions and Mobile Phones units will have dedicated portfolio management, including product planning, R&D and dedicated software assets.

The third unit, Markets, will be responsible for Nokia's 'go-to-market' activities, including sales and marketing, management of Nokia's global supply chains and sourcing operations.

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