Nokia has announced its financial targets for the next two years and the company has revealed that its main focus is to gain market share in mobile technology. However, share declined 3.5% in morning trading according to a report in The Wall Street Journal as the company was down $1.40.
Olli Pekka Kallasvuo, CEO of the company predicts that the group operating margin will reach 16% to 17% in the next two years. The forecast for the mobile device and services business in the next two years is an operating margin of 20%. The company’s shares are up 76% from last year. Kallasvuo said to The WSJ that he anticipates the competition to become tougher in 2008 with newer competitors such as Microsoft and Google entering the mobile market. This threat has sped up the work to create stronger divisions within the company besides mobile hardware.
“Nokia’s goal is to be the world’s No. 1 in bringing the Internet to mobile devices. We estimate that in 2010, the total Internet-services market will be approximately $147 billion,” Kallasvuo said to WSJ. Besides various deals with music and entertainment companies, Nokia is also planning to acquire Palo Alto-based Avvenu, to further this venture. Avvenu is a software company whose product assists access to personal files from mobile handsets. Terms of the deal were not disclosed.