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Technology Leadership Agenda Technology • Digital Convergence – Opportunity to Add Value Leadership • Nokia Platform Strategy for Innovation and Economies of Scale • Technology as a Cornerstone for Sustainable Success • Product Creation for Volumes and Innovation Pertti Korhonen • Conclusions Senior Vice President and CTO Nokia Capital Market Days 2003 1 © NOKIA 2003 2 © NOKIA 2003 Convenience for the user In Converging Digital World – Nokia Brings Seamless Solutions Send Messages Send Messages Access Corporate Play -MMS; IMPS; Mobile Systems & E-mail Games SMS domain -Security, Access authentication; Corporate Play Games device Management; Systems - Bluetooth; Jav a platf orm Wl an; DR M man ag e ment . WS i Browse Internet Internet Enterprise Browse (media) domain Consumer Internet domain Read -(x)HTML Email Download Download video video Share -DRM; Video Home Streaming domain Share Pictures, Music, Pictures, Video Music, - DRM; Bluetooth; WLAN; Video 3 © NOKIA 2003 4 © NOKIA 2003 Personal Mobile Device will capture value Life Goes Mobile With Evolving Services Traditional Portable Cons ume r Cons ume r Person-to-person Sharing moments Electronics Electro n ics services with media of your choice Real time video sharin g Push-to-talk, Presence Accessing Internet with the Consumer mobile multimedia Video services favorite,favorite, personalizedpersonalized messagin g channel Photo and audio •My ubiquitous device messagin g •Always with me Seamless •Seamlessly connected mobile office Full Internet •My content and s ervices Content-to-person browsing experience, services high-value videos Enhance d browsing, versat ile Short applications videos Multiaccess services Simple Desktop PC Impro ved Mobile voice applications ia Instant d performance e s M A connectivit y, and usability D P terminal Business personalization Secure corporate services connectivit y 5 © NOKIA 2003 6 © NOKIA 2003 Agenda Product platform: Definition • Platform aims to provide a family of distinct products or services, covering current and future customer segment needs in a rapid and cost- • Digital Convergence – Opportunity to Add Value effective manner • Nokia Platform Strategy for Innovation and Economies of Scale • Technology as a Cornerstone for Sustainable Success • Product Creation for Volumes and Innovation • Conclusions VW Golf Audi A3 Seat Leon Skoda Fabia 7 © NOKIA 2003 8 © NOKIA 2003 Right timing with New Innovations Platform Strategy System Product Productization Architecture Platform Consumer offer 24 + m onths 6-12 m onths 12-24 months Products Product Pl atform 1 Categories STYLE DIMENSIONS: Architecture Basic, Expression, Classic, Premium, Fashion, Active Product Pl atform 2 FUNCTIONAL DIMENSIONS: Features Phones, Imaging, Entertainment, Media, Bus iness Applications UI & Applications OS Software platforms Chipset Electro mechanics Series 30 Series 40 Series 60Series 80 Series 90 Mechanics Chipsets 9 © NOKIA 2003 10 © NOK IA 2003 Common Engine Platforms Enabling Rapid Series 60 - the Leading Smart Phone Platform Innovation of Differentiated Products • Preferred terminal platform Add -on applications • 9 Models launched • Series 60 has 80% share of Smart Smartphone Phone market Series 60 Platform Series 60 Platform • Enjoys wide developer support Applications • Enables Interoperability User Interface • Allows differentiation Symbian O S HW & Cellular sw Interoperability between terminals from a wide range of manufacturers Platform 1 Platform 2 Platform 3 11 © NOK IA 2003 12 © NOK IA 2003 Enabling Operator Service Differentiation Software Platform for True Innovation Default 6600 look Richard Horton, Head of Content Platf orms, Nokia’s Developer T-Mobile International : • Operator Service differentiation promise : combined with benefits of Series 60 "Since their launch, Series 60 devices platform consistency Access to the Mobile mas s mar k et v ia (including the Nokia 3650 and 7650) have volume developer achieved some of the highest number of platf orm and key downloads from t-zones and contributed to a • Coexistence of operator service and Vodafone Live! technology enablers significant increase in download business for device look & feel look & feel Word’s largest T-Mobile International" Mobile Developer Community • UI themes highlight operator’s service brand • 1.250.000 registered members • 330 000+ documents download s p er month • 12 000+ unique visitors per day • 100 new topics/day in discussion boards 13 © NOK IA 2003 14 © NOK IA 2003 Agenda Nokia Chipset Strategy GSM/GSM/ ••DriveDrive and and Focus Focus on on Value-added Value-added • Digital Convergence – Opportunity to Add Value WCDMAWCDMA ••LeadershipLeadership in in 3G 3G family family - - EDGE EDGE & & WCDMA/GS WCDMA/GS M M • Nokia Platform Strategy for Innovation and Economies of Scale • Emphasis for leadership in CDMA • Technology as a Cornerstone for Sustainable Success • Emphasis for leadership in CDMA ••LeadLead and and drive drive 1X-EV/DV 1X-EV/DV CDMA •August 2003: the world’s first 1xEV-DV high-speed data call • Product Creation for Volumes and Innovation CDMA •August 2003: the world’s first 1xEV-DV high-speed data call ••WorkingWorking with with TI TI and and ST ST to to introduce introduce a a chipset chipset for for open open • Conclusions marketmarket based based on on Nokia’s Nokia’s CDMA CDMA technology technology WLANWLAN & & ••StrongStrong commitment commitment to to WLAN, WLAN, complementing complementing cellular cellular proximityproximity ••DriveDrive for for mobile mobile optimised optimised WLAN, WLAN, and and other other non-cellular non-cellular ApplicationApplication ••CooperateCooperate with with industry industry bests bests & & add add value value through through ProcessorsProcessors ownown technology technology 15 © NOK IA 2003 16 © NOK IA 2003 A Year of Nokia Leadership in EDGE Nokia is leading in 3G in all key technology metrics Nokia 7600 Nov 18, 2002 Nov 18, 2003 • Standby: 290 hours • Launch of world’s first • Three models shipping. Several more GSM/EDGE 3G phone announced. • Active connection time: 190 minutes Nokia 7600 • Up to 118.4 kbps • 6230 (up to 236.8 kbps), 3GPP streaming • Weight:Nokia has a clear123 lead grams in key usability metrics • GSM/EDGE 850/1800/1900 • 7700 media device • Seamless handover YES • Call reliability • Deliveries: spring 2003 • 5140 with PTT (RT VoI P over GPRS/EDGE) Motorola A 920 • Standby:• Handover between70 hours 3G and 2G • Active• connection Standby time:time 95 minutes Motorola A 920 • Weight:• Active connection212 grams time • Seamless handover NO •Weight NEC E 808 • Standby: 70 hours • Active connection time: 201 minutes NEC E 808 • Weight: ~ 195g • Seamless handover NO 17 © NOK IA 2003 18 © NOK IA 2003 3G Evolves to Multiradio Agenda • S ev eral co nn ection meth o d s will beco me to co mp lemen t 3G • IP convergence providing unified connection layer • Towards radio-agnostic services • Digital Convergence – Opportunity to Add Value • Nokia Platform Strategy for Innovation and Economies of Scale Cellular Access WCDM A WLAN Hot Spot Access • Technology as a Cornerstone for Sustainable Success "personal, "richest available • Product Creation for Volumes and Innovation trustworthy, cdma2000 content, browsing seamless global just for the fun of it" • Conclusions roaming" BT Broadcasting world: Proximity world: mas s med ia local s erv ices TV DVB-H RFID personal area “CNN news, UWB "local info, local Sugar Bowl commerce, cable on the road" replacement" 19 © NOK IA 2003 20 © NOK IA 2003 Scope of R&D Broader than Product Development Nokia's Product Creation Philosophy Vitruvius : Three Pillars of Architecture Products • Firmitas Reliability. Quality. It works. • Utilitas Ease of use and ergonomics. Designed to suit its purpose. • Venustas Beauty. Equally important as the other two. Demand-Supply iF design award.CHINA Brand Sep 24, 2003 Network The panel of judges looked at, not only the product’s exterior, but its overall design and function. What makes Technology- Springboard for Competitiveness Nokia 6108 special is its intuitive pen input feature, which is specially designed for Chinese language users. 21 © NOK IA 2003 22 © NOK IA 2003 Product Creation: the Foundation for Nokia’s User Interfaces Contributing to Nokia Brand Demand Supply Network Excellence • User Interface is a fundamental constituent in Nokia's brand equity, and together with industrial design the key differentiator against competitors Design for Design for Design for Board Assembly Production Testing Final Assembly Easy Effective Satisfying to use Component Sourcing Manufacturing Sales and Manufacturing Distribution Enjoyable Clear typography Intuitive Navigation Design Design for Design for Design for Sourcing Packing for distribution Aesthetic graphics Consistent language manufacturing Mastering the Demand-Supply Network 23 © NOK IA 2003 24 © NOK IA 2003 Component Count Evolution Mastering Terminal SW as Core Competence MCUSW (Mbytes) DSP (kbytes) 1000 18 900 900 16 800 MCUSW (Mbytes) 800 14 700 DSP (kbytes, seconda ry axis) 700 12 600 600 10 500 500 8 400 400 6 300 300 4 200 200 2 100 100 0 0 0 1992 1994 1996 1998 2001 2003 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 25 © NOK IA 2003 26 © NOK IA 2003 Focused R&D Investments Agenda Strong SW Muscle • Digital Convergence – Opportunity to Add Value Technology Platforms Networks HW • Nokia Platform Strategy for Innovation and Economies of Scale • Technology as a Cornerstone for Sustainable Success • Product Creation for Volumes and Innovation • Conclusions SW Enterprise Mobile Phones Multimedia Solutions 27 © NOK IA 2003 28 © NOK IA 2003 Conclusions • Technology brings the means to delight the users • Platforms provide basis for effective & efficient product creation • Design for demand-supply network is the foundation for industry leading profits • Nokia simultaneously masters complexity & scale 29 © NOK IA 2003 30 © NOK IA 2003.
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