nokia internet services strategy · nokia margin is expected to be . service revenue € highly...
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1 © 2007 Nokia Capital Markets Day 2007
Nokia Internet Services StrategyAnssi Vanjoki
Executive Vice President, Multimedia
2 © 2007 Nokia Capital Markets Day 2007
Where we are coming from
3 © 2007 Nokia Capital Markets Day 2007
2002
Nokia has led the converged devices category since its birth in 2002
2003 2004 2005 2006 2007
4 © 2007 Nokia Capital Markets Day 2007
All my connected applications, always with me
GPS
Mobile devices have become powerful multimedia computers
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Competitive landscape
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CE, PC and mobile companies offer today a wide range of Multimedia Computers
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Strong growth expected to continue in Multimedia Computers
Converged device market (Millions of units)
0
50
100
150
200
2005
250
120
180
80
2006 2007E 2008E
46
Source: Nokia 2007
8 © 2007 Nokia Capital Markets Day 2007
Nokia leads in Multimedia Computers
Global converged mobile device market shares
(Q3 2007)
Other25 %
Apple3 %
RIM10 %
Motorola6 %
Fujitsu6 %
Nokia 50 %
Source: Canalys Oct 2007
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Ovi Internet Services
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Convergence of Internet and mobility creates new business opportunities for Nokia
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is your personal dashboard to life
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People want full experiences –
including mobile, PC and web services
PC
Device
.COM
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Nokia targets with Ovi
•Create incremental sales and profits
•Drive device ASP and market share
•
Enhanced experience•
Ease of use•
Higher retention
•Enhance Nokia brand image•Renewal of Nokia to being an
Internet company
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Ovi business models
SubscriptionsAdvertising
Transactions
Device ASP
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Business model – Entertainment and communities
Music, games, videos€ Transactions€ Subscriptions€ Advertising
Communities€ Subscriptions€ Advertising
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€ Advertising
€
TransactionsReferral
Fees
€ Premium
Content
€ Navigation
Business model – Location based services
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Building a global advertising network
•
Nokia Ad business will create an open model where all parties can participate and make money while developing the mobile advertising including:
•
Brands•
Agencies•
Publishers •
Operators
•
The acquisition of Enpocket
accelerates the scaling of Nokia’s mobile advertising business, leveraging our platform and strong partnerships with advertisers, publishers and operators.
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• Rights holders take bulk of the entertainment revenues
• Billing can be arranged in multiple ways
• Nokia margin is expected to be highly dependent on volumes
Serv
ice
reve
nue
€Business model –
Multiple stakeholders
VAT
Nokia
Credit card billing
Content provider(Music, games, maps, etc)*
* Note:
Content provider share varies by service category. Nokia is the content provider for some services.
20 © 2007 Nokia Capital Markets Day 2007
* Note:
Content provider share varies by service category. Nokia is the content provider for some services.
Operator revenue opportunities•
Data •
Billing•
Marketing •
Retail•
Care
Serv
ice
reve
nue
€Business model –
Cooperation with operators
Content provider(Music, games, maps, etc)*
VAT
Nokia
Operator
21 © 2007 Nokia Capital Markets Day 2007
Services and devices support each other
Tight integration of full experience = ease of use
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Summary•
Nokia is leading the fast growing converged devices category
•
Internet services are the future growth driver for Nokia
•
Ovi by Nokia services drive both new revenues and device ASP
23 © 2007 Nokia Capital Markets Day 2007
Thank you.