AMSTERDAM, The Netherlands-Nokia Corp. slightly lowered its financial expectations for the coming years, news that caused investors to pause, but the company also unveiled four new slim, mid- and low-tier devices Nokia hopes will boost its worldwide market share.
“To enjoy the full benefits of the continuing growth of the global device market that Nokia expects, we’ve made a number of important strategic moves and organizational changes, and have put our marketing and design efforts into a sharper focus,” said Nokia President and CEO Olli-Pekka Kallasvuo. “With these changes, and more to come, we believe Nokia has the power to build a further improved portfolio of devices that raises industry standards to a whole new level.”
At its annual Capital Market Days event in Amsterdam, Nokia said it expects its operating margin to hover around 15 percent during the next one to two years-down slightly from the 17-percent operating margin target Nokia set in December 2005. Nokia said the decline is primarily due to its “increased exposure to the infrastructure market following the expected start of operations of Nokia Siemens Networks.” Nokia and Siemens earlier this year announced their intention to combine their infrastructure businesses.
Nokia also slightly lowered its target operating margin for its mobile-phone business to 17 percent during the next one to two years. The company in December 2005 said it expected operating margins of between 17 and 18 percent.
Nokia’s stock slipped by 30 cents per share on the news to around $20 per share.
As for the company’s new phones, Nokia took the wraps off three mid-tier gadgets and one low-end phone, devices that “underscore our commitment to offer a range of mobile phones that give consumers a choice in selecting the right balance of technology and design to meet their lifestyle and budget,” said Kai Oistamo, head of Nokia’s phone business.
The new phones feature slimmer designs-a nod to the popularity of Motorola Inc.’s Razr phone.
