Post on 31-Dec-2020
1 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials
Company Confidential
Nokia in China
Capital Market Days
Colin GilesSenior Vice PresidentCMO, Nokia China
2 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials
Company Confidential
Strong Growth Continuing in China
0
100
200
2003 2004 2005 2006E
Mo
bile
Dev
ice
Mar
ket V
olu
me
(m)
0 %
10 %
20 %
30 %
40 %
Mo
bile
Dev
ice
Pen
etra
tio
n %
Source : Nokia estimates
Market Volume Subscription Penetration
3 © 2006 Nokia
• Confident & optimistic
• Strong national pride
• Busy & full life but embrace fun & leisure
• Growing demand for new experiences & stimulation
• Informed consumers
• Emerging middle-class
• Internet & gadget-savvy youth
• Quality first
• Fashion & design key choice criteria
• Rural Chinese demand telecom service
Chinese Consumers
4 © 2006 Nokia
• Seasonality consistent
• Market moving to smaller cities; fragmenting retail in these markets
• Large retail chains consolidating in the larger cities
• Operator bundles taking a larger share of the market; China Mobile Super Low End a strong contributor to growth
• Convergence story is beginning
Current Market Trends
5 © 2006 Nokia
33.9%443MMobile Phones
0.6%8MDigital Cameras
8%100MMP3
6.8%88MEmail
9.5%123MInternet
Penetration (%)
USERS
Converging to Mobile
Source: CNNIC, July’06 (Internet); IMI ’05-’06 (MP3); IResearch ’06 (Email),
CMMS ’06 (Digital Camera); MII Oct’06 (Mobile Phones)
6 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials
Company Confidential
7 © 2006 Nokia
• Established 21 years ago
• Over 7200 employees
• External Sales force of 6000+
• 6 Research & Development Units
• Product Creation
• Networks Technology
• Nokia Research Center
• 4 Manufacturing Units
• Mobile Phone Manufacturing in Beijing and Dongguan
• Networks in Beijing and Suzhou
Nokia’s presence in China
8 © 2006 Nokia
• Sales of 3.95 billion EUR in Q1 – Q3/06
• Year on year sales growth ofover 45%
• Nokia exports of over 2.8 BEUR in 2005
• 13 Quarters of consecutive market share growth (Mainland)
• 36.6 million units sold in Q1 – Q3/06
Nokia in China
9 © 2006 Nokia
• Established a strong sales & marketing platform
• Do not under-estimate distribution
• Presence at Retail
• Chinese Vendors couldn’t follow through
•Quality
•Sustainable Investments
•R&D
• Strong Brand Presence
Nokia SuccessStory
10 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials
Company Confidential
Mobile Phone Brand Preference
0
20
40
60
Q4'05 Q1'06 Q2'06 Q3'06
Nokia
Motorola
Samsung
SonyEricsson
Any domesticBrand
DK/NS
Source : Nokia estimates
11 © 2006 Nokia
• Maintain our leadership through• Scale• Quality• Distribution/Coverage• Brand• Execution
• Enhancing our relationships with• National & Provincial Distributors• National & Provincial Retailers• Operators
• Preparing for 3G• Expanding to new
experience-led domains• Imaging• Music• E-mail• Mobile Internet
Nokia Strategy in China
12 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials
Company Confidential
•3G opens up the market to competition and new services
•Where’s the subscriber ceiling?•Imaging devices are now well accepted •After SMS – Is music the next driver for value
added services growth?•Can mobile phones bring Internet access
to the masses?•Enterprise potential is huge
Market Potential
13 © 2006 Nokia Nokia World.ppt / 2006-09-07 / Initials
Company Confidential
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