Nokia appoints Microsoft Business Division Head as chief executive

The Finnish communications corporation Nokia announced that its Head will change on September 21. The previous chief executive Olli-Pekka Kallasvuo will continue to chair in non-executive capacity. The head of Microsoft Business division Stephen Elop will take the position. It is the first time a non-Finn becomes Nokia president and chief executive.

Stephen Elop in 2008. Image: luca.sartoni

The change follows Nokia’s fall in world markets. It includes a decrease in Nokia’s American market share to less than ten percent after failed negotiations with a number of leading American phone providers. An analyst at a market analyst company Canalys Pete Cunningham said, “Despite holding 38 percent market share of the smartphone market, Nokia’s failure to compete with the iPhone and high-tier Android devices, combined with its lack of progress in gaining significant traction in the United States, has led to press and investor dissatisfaction.”

Some commenters suggested that Nokia chose Mr. Elop partly because he is a Canadian, following criticism of American candidates by the Finnish press. However a Nokia spokesman rejected this, saying, “Nationality was not a selection criteria.”

Stephen Elop was president and CEO of the graphics and web-development software house Macromedia prior to its acquisition by Adobe in 2005. He then joined Microsoft as President of Microsoft’s Business Division in January, 2008. Commenting on his new role he said, “Nokia has a unique global position as well as a great brand upon which we can build. The Nokia slogan clearly states our key mission: Connecting People, which will acquire new dimensions as we build our portfolio of products, solutions and services.”

In the announcement the Chairman of the Nokia Board of Directors Jorma Ollila stressed an expected shift of focus from hardware to software. “His [Stephen Elop’s] strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company. We believe that Stephen will be able to drive both innovation and efficient execution of the company strategy in order to deliver increased value to our shareholders”.

Nokia stated in an official blog post, “Nokia is transitioning from a hardware manufacturer of mobile devices to a software and solutions business. …Stephen’s background in the software industry is one of his key strengths.”

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Nokia to acquire Motally

Espoo, Finland – Nokia today announced it has signed an agreement to acquire Motally Inc., a privately-held US-based company. Motally’s mobile analytics service offers in-application tracking and reporting, and is designed to enable developers and publishers to optimize the development of their mobile applications through increased understanding of how users engage. The service offering is planned to be adapted for Qt, Symbian, Meego and Java developers, and Nokia plans to continue serving Motally’s existing customer base.

“The acquisition underpins Nokia’s drive to deliver in-application and mobile web browsing analytics to Ovi’s growing, global eco-system of developers and publishers, enabling partners to better connect with their customers and optimize and monetize their offering”,  said Marco Argenti, Vice President, Media, Nokia.

Motally currently employs a team of eight people.

The transaction is subject to customary closing conditions and is expected to close during the third quarter of 2010.

Motally: Optimized developer and publisher product offerings through mobile analytics functionality.

Renesas Electronics to acquire Nokia’s wireless modem business; companies to form strategic business alliance for modem technology development

Espoo, Finland and Tokyo, Japan – Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, and Nokia Corporation, the world leader in mobile communications, today announced that they are deepening their collaboration by forming a strategic business alliance to develop modem technologies for HSPA+/LTE (Evolved High-Speed Packet Access / Long-Term Evolution) and its evolution.

As part of this alliance, the companies have entered into an agreement whereby Renesas Electronics is to acquire Nokia’s wireless modem business for approximately USD 200 million. The alliance is planned to be enhanced by long-term joint research cooperation on future radio technologies.

The planned transfer of Nokia’s wireless modem business enables Renesas Electronics to maximize the value of Nokia’s technology assets and engineering expertise in delivering advanced mobile platform solutions to the market by combining them with Renesas Electronics’ market-proven multimedia processing and RF technologies. Together with Renesas Electronics’ robust line-up of application processors, RF transceiver ICs, high power amplifiers, and power management devices, the wireless modem technologies enable Renesas Electronics to deliver a complete mobile platform solution to the market.

The wireless modem business to be transferred to Renesas Electronics includes Nokia’s wireless modem technologies for LTE, HSPA and GSM standards, which have been used for billions of handsets in the global market over the years. Further, Nokia transfers Renesas Electronics certain patents related to the transferred technology asset. The planned transfer would also include approximately 1,100 Nokia R&D professionals, the vast majority of whom are located in Finland, India, the UK and Denmark.

The planned transfer is expected to further strengthen Renesas Electronics’ position as one of the leading chipset vendors in the 3G and LTE market that is capable of providing one-stop mobile platform solutions, supporting an extensive range of modem protocols from GSM to LTE, and integrating advanced multimedia and computer processing capabilities.

“The agreement with Nokia demonstrates our long-standing commitment to shape the future of advanced mobile platforms and will serve as an important step for us to become a leading mobile platform vendor in the global market. Our collaboration with Nokia will enable consumers to enjoy true mobile cloud computing experiences through our advanced high-speed mobile devices,” said Yasushi Akao, President of Renesas Electronics Corporation. “In line with our ongoing efforts to strengthen our business structure, the transferring wireless modem technology and the innovation power and expertise of Nokia’s employees will perfectly complement our core competences and serve as the key driving forces in growing our mobile business in the global market.”

“Wireless modems are an integral part of today’s chipset solutions, and we believe that Renesas Electronics, as one of the key chipset vendors in the market, is in an ideal position to further develop this offering. The alliance enables us to continue to focus on our own core businesses, connecting people to what matters to them with our mobile products and solutions,” says Kai Oistamo, Executive Vice President, Nokia.

Renesas Electronics has licensed the Nokia modem since 2009 and the two companies have been working together to develop an industry-leading HSPA+/LTE platform. “I believe that the integration of the world class Nokia wireless modem into Renesas Electronics’ strong multimedia processing and RF capabilities, places Renesas Electronics in a strong position in HSPA+/LTE chipsets,” says Oistamo.

In order to implement the planned business transfer, Nokia will start the appropriate personnel consultation process with its personnel representatives according to each applicable jurisdiction’s labor law requirements. The transfer is subject to regulatory approvals and other customary closing conditions, and is estimated to take place during the fourth quarter 2010.

About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723), the world’s number one supplier of microcontrollers, is a premiere supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at http://www.renesas.com.

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.2 billion people connect to one another with a Nokia device – from mobile phones to advanced smartphones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi (www.ovi.com), including music, maps, apps, email and more. Nokia’s NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally.

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical facts are forward-looking statements, including, without limitation, those regarding: A) the timing of the deliveries of our products and services and their combinations; B) our ability to develop, implement and commercialize new technologies, products and services and their combinations; C) expectations regarding market developments and structural changes; D) expectations and targets regarding our industry volumes, market share, prices, net sales and margins of products and services and their combinations; E) expectations and targets regarding our operational priorities and results of operations; F) the outcome of pending and threatened litigation; G) expectations regarding the successful completion of acquisitions or restructurings on a timely basis and our ability to achieve the financial and operational targets set in connection with any such acquisition or restructuring; and H) statements preceded by “believe,” “expect,” “anticipate,” “foresee,” “target,” “estimate,” “designed,” “plans,” “will” or similar expressions. These statements are based on management’s best assumptions and beliefs in light of the information currently available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the competitiveness and quality of our portfolio of products and services and their combinations; 2) our ability to timely and successfully develop or otherwise acquire the appropriate technologies and commercialize them as new advanced products and services and their combinations, including our ability to attract application developers and content providers to develop applications and provide content for use in our devices; 3) our ability to effectively, timely and profitably adapt our business and operations to the requirements of the converged mobile device market and the services market; 4) the intensity of competition in the various markets where we do business and our ability to maintain or improve our market position or respond successfully to changes in the competitive environment; 5) the occurrence of any actual or even alleged defects or other quality, safety or security issues in our products and services and their combinations; 6) the development of the mobile and fixed communications industry and general economic conditions globally and regionally; 7) our ability to successfully manage costs; 8) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain other currencies; 9) the success, financial condition and performance of our suppliers, collaboration partners and customers; 10) our ability to source sufficient amounts of fully functional components, sub-assemblies, software, applications and content without interruption and at acceptable prices and quality; 11) our success in collaboration arrangements with third parties relating to the development of new technologies, products and services, including applications and content; 12) our ability to manage efficiently our manufacturing and logistics, as well as to ensure the quality, safety, security and timely delivery of our products and services and their combinations; 13) our ability to manage our inventory and timely adapt our supply to meet changing demands for our products; 14) our ability to protect the complex technologies, which we or others develop or that we license, from claims that we have infringed third parties’ intellectual property rights, as well as our unrestricted use on commercially acceptable terms of certain technologies in our products and services and their combinations; 15) our ability to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks patented, standardized or proprietary technologies from third-party infringement or actions to invalidate the intellectual property rights of these technologies; 16) the impact of changes in government policies, trade policies, laws or regulations and economic or political turmoil in countries where our assets are located and we do business; 17) any disruption to information technology systems and networks that our operations rely on; 18) our ability to retain, motivate, develop and recruit appropriately skilled employees; 19) unfavorable outcome of litigations; 20) allegations of possible health risks from electromagnetic fields generated by base stations and mobile devices and lawsuits related to them, regardless of merit; 21) our ability to achieve targeted costs reductions and increase profitability in Nokia Siemens Networks and to effectively and timely execute related restructuring measures; 22) developments under large, multi-year contracts or in relation to major customers in the networks infrastructure and related services business; 23) the management of our customer financing exposure, particularly in the networks infrastructure and related services business; 24) whether ongoing or any additional governmental investigations into alleged violations of law by some former employees of Siemens AG (“Siemens”) may involve and affect the carrier-related assets and employees transferred by Siemens to Nokia Siemens Networks; 25) any impairment of Nokia Siemens Networks customer relationships resulting from ongoing or any additional governmental investigations involving the Siemens carrier-related operations transferred to Nokia Siemens Networks; as well as the risk factors specified on pages 11-32 of Nokia’s annual report Form 20-F for the year ended December 31, 2009 under Item 3D. “Risk Factors.” Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

“HEROES” creator Tim Kring and Nokia launch Conspiracy For Good

Audience participation drives social and educational change

Espoo, Finland – “Heroes” creator Tim Kring and Nokia today unveiled Conspiracy For Good (CFG, www.ConspiracyForGood.com), an inaugural movement that blends online and real-world tasks to effect social change through audience participation. CFG combines Kring’s original storytelling (www.ConspiracyForGood.com/about) and Nokia’s Ovi platform (www.ovi.com) to create a dramatic, fictional experience using interactive theatre, mobile and alternate reality gaming (ARG), music and physical participation to do good in the world. Participants will become part of the plot development and will find the necessary tools and clues to move the narrative forward and into the real-world, ultimately creating social and educational change for the Chataika Basic School, located in the village of Chataika in eastern Zambia.

“I believe that storytelling has the power to create positive change in the world. Audiences today want to be more involved in stories,” said Tim Kring, 2010 Digital Emmy Pioneer Award winner for transmedia storytelling. “Our goal with the Conspiracy For Good is to entice, engage, and inspire the audience to drive real-world change through their participation in a narrative.”

The Backstory (Fictional Plot)
Over the decades, members of Conspiracy For Good have been reputed to be quietly and effectively doing good in the world’s most troubled areas. But CFG is not without enemies, and it is now under fierce attack by Blackwell Briggs (www.blackwellbriggs.com), a London-based multinational company committed to advanced infrastructure development and security services. For help, CFG turned to Kring, a master storyteller, to share their story, recruit new members to read the signs, and bring down Blackwell Briggs.

Joining the Conspiracy For Good
Participants enter into the story, which fuses reality and fiction, through www.ConspiracyForGood.com, where they will join like-minded thinkers, artists, musicians and causes, creating a unified voice to fight for social and environmental justice. The audience can take action within their own comfort zone and level of engagement to meet new people with similar interests online and in person, and have some fun too. Participants who join CFG will be able to solve mysteries online, play casual mobile games or be a physical participant in the London events that will take place from mid-July through early August.

CFG brings to life many of the experiences that Ovi, Nokia’s Internet service platform, offers to people that use its devices. CFG participation on Ovi occurs through a series of existing and upcoming apps including casual games like “Exclusion” (http://tiny.cc/4ujaw) and “Mainframe Liberator” (http://tiny.cc/r9qfx) that unlock codes to confidential websites, Ovi Maps (www.ConspiracyForGood.com/map) to guide characters through the story, and Ovi Music where hidden information within songs can be deciphered to advance the story.

In the UK, participants will be able to download a special edition app called Conspiracy For Good: DeadDrop powered by Nokia’s Point & Find service. Available in the UK Ovi Store (http://store.ovi.com) in mid-July, the app will allow players to point at objects and images in the real-world to discover clues and participate in challenges during the series of upcoming events in London.

“Tim Kring has truly realized the potential for Nokia’s Ovi platform as an additional distribution channel to once more advance storytelling through interconnected services and active audience participation,” said Tero Ojanperä, executive vice president, Nokia. “Conspiracy For Good is Nokia’s most powerful example to date for how content owners can blur the lines between the online and real-world to connect people to change.”

How to Join ConspiracyForGood.com
Anyone is welcome to join the conspiracy from any country. For those who live in or plan to visit London later this summer, event participation is free, registration to www.ConspiracyForGood.com is required and no purchase is necessary.

About Tim Kring
Tim Kring is one of the Hollywood creative community’s original transmedia storytellers, who works seamlessly across mediums, including viewing screens and delivery devices such as film, TV, broadband, computers, mobile devices and the printed page to engage audiences around the world in narrative and immersive story arcs. For four television seasons, Kring served as the creator and executive producer of “Heroes,” NBC’s Emmy®-nominated epic saga that chronicles the lives of ordinary people who discover they possess extraordinary abilities. An estimated 76 million fans viewed “Heroes” every week around the world on TV and via interactive online programming.

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.2 billion people connect to one another with a Nokia device – from mobile phones to advanced smartphones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi (www.ovi.com), including music, maps, apps, email and more. Nokia’s NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally.

About Ovi
Ovi is a family of internet services for use on Nokia mobile devices that keeps people connected to the people and things that matter. Ovi services include Ovi Maps with walk and drive navigation and premium travel content; Ovi Music with millions of music tracks; Ovi Mail for email and messaging; Ovi Share for sharing content; and the Ovi Store, filled with thousands of apps, games and media from the content industry’s biggest names along with independent developers. Content publishers are invited to distribute and monetize their content through Ovi by visiting http://www.publish.ovi.com. More information is available at www.ovi.com.

Nokia lowers Devices & Services second quarter 2010 outlook and updates the full year 2010 outlook

Nokia Corporation
Stock exchange release
June 16, 2010 at 15:00 (CET +1)

Espoo, Finland – Nokia today commented on factors impacting its business and updated its second quarter and full year 2010 outlook for Devices & Services. During the second quarter 2010, multiple factors are negatively impacting Nokia’s business to a greater extent than previously expected. These factors include: the competitive environment, particularly at the high-end of the market, and shifts in product mix towards somewhat lower gross margin products. In addition, the recent depreciation of the Euro affects Nokia’s cost of goods sold, operating expenses and global pricing tactics.

Updated outlook for Devices & Services for the second quarter 2010:
– Nokia now expects Devices & Services net sales to be at the lower end of, or slightly below, its previously expected range of EUR 6.7 billion to EUR 7.2 billion for the second quarter 2010. This update is primarily due to lower than previously expected average selling prices and mobile device volumes.
– Nokia now expects Devices & Services non-IFRS operating margin to be at the lower end of, or slightly below, its previously expected range of 9% to 12% for the second quarter 2010. This update is primarily due to a lower than previously expected gross margin.

Updated outlook for Devices & Services and mobile device market for the full year 2010:
– Nokia continues to expect industry mobile device volumes to be up approximately 10% in 2010, compared to 2009 (based on its revised definition of the industry mobile device market applicable beginning in 2010).
– Nokia continues to target its mobile device volume market share to be flat in 2010, compared to 2009.
– Nokia now expects its mobile device value market share to be slightly lower in 2010, compared to 2009. This update is primarily due to the competitive situation at the high-end of the market and shifts in product mix. This is an update to our previous target to increase our mobile device value market share slightly in 2010, compared to 2009.
– Nokia continues to target non-IFRS operating expenses in Devices & Services of approximately EUR 5.7 billion in 2010.
– Nokia now expects Devices & Services non-IFRS operating margin to be at the lower end of, or below, its previously targeted range of 11% to 13% for the full year 2010. This update is primarily due to the currently estimated gross margin, which is lower than previously estimated. Nokia expects Devices & Services non-IFRS operating margin during the fourth quarter 2010 to be higher than the currently expected full year Devices & Services non-IFRS operating margin.

Nokia will provide its second quarter results and more details on its 2010 full year outlook when it reports its Q2 2010 results on July 22, 2010.

Nokia will be hosting a conference call at 13:30 UK time (8:30 EST). The dial-in number for media (listen only – the question and answer session will be limited to financial analysts and investors only) is +1 706 634 5012. Conference ID: 82113811.

The dial-in number for financial analysts and investors is US: +1 888 636 1561. Conference ID: 82113811. UK: +44 1452 560 299. Conference ID: 82236648.

A replay of the call will be available soon after the call completion. The replay number is US: +1 800 642 1687. Conference ID: 82113811. UK: +44 1452 55 0000. Conference ID: 82236648.

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.2 billion people connect to one another with a Nokia device – from mobile phones to advanced smartphones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi (www.ovi.com), including music, maps, apps, email and more. Nokia’s NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally.

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical facts are forward-looking statements, including, without limitation, those regarding: A) the timing of the deliveries of our products and services and their combinations; B) our ability to develop, implement and commercialize new technologies, products and services and their combinations; C) expectations regarding market developments and structural changes; D) expectations and targets regarding our industry volumes, market share, prices, net sales and margins of products and services and their combinations; E) expectations and targets regarding our operational priorities and results of operations; F) the outcome of pending and threatened litigation; G) expectations regarding the successful completion of acquisitions or restructurings on a timely basis and our ability to achieve the financial and operational targets set in connection with any such acquisition or restructuring; and H) statements preceded by “believe,” “expect,” “anticipate,” “foresee,” “target,” “estimate,” “designed,” “plans,” “will” or similar expressions. These statements are based on management’s best assumptions and beliefs in light of the information currently available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the competitiveness and quality of our portfolio of products and services and their combinations; 2) our ability to timely and successfully develop or otherwise acquire the appropriate technologies and commercialize them as new advanced products and services and their combinations, including our ability to attract application developers and content providers to develop applications and provide content for use in our devices; 3) our ability to effectively, timely and profitably adapt our business and operations to the requirements of the converged mobile device market and the services market; 4) the intensity of competition in the various markets where we do business and our ability to maintain or improve our market position or respond successfully to changes in the competitive environment; 5) the occurrence of any actual or even alleged defects or other quality, safety or security issues in our products and services and their combinations; 6) the development of the mobile and fixed communications industry and general economic conditions globally and regionally; 7) our ability to successfully manage costs; 8) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain other currencies; 9) the success, financial condition and performance of our suppliers, collaboration partners and customers; 10) our ability to source sufficient amounts of fully functional components, sub-assemblies, software, applications and content without interruption and at acceptable prices and quality; 11) our success in collaboration arrangements with third parties relating to the development of new technologies, products and services, including applications and content; 12) our ability to manage efficiently our manufacturing and logistics, as well as to ensure the quality, safety, security and timely delivery of our products and services and their combinations; 13) our ability to manage our inventory and timely adapt our supply to meet changing demands for our products; 14) our ability to protect the complex technologies, which we or others develop or that we license, from claims that we have infringed third parties’ intellectual property rights, as well as our unrestricted use on commercially acceptable terms of certain technologies in our products and services and their combinations; 15) our ability to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks patented, standardized or proprietary technologies from third-party infringement or actions to invalidate the intellectual property rights of these technologies; 16) the impact of changes in government policies, trade policies, laws or regulations and economic or political turmoil in countries where our assets are located and we do business; 17) any disruption to information technology systems and networks that our operations rely on; 18) our ability to retain, motivate, develop and recruit appropriately skilled employees; 19) unfavorable outcome of litigations; 20) allegations of possible health risks from electromagnetic fields generated by base stations and mobile devices and lawsuits related to them, regardless of merit; 21) our ability to achieve targeted costs reductions and increase profitability in Nokia Siemens Networks and to effectively and timely execute related restructuring measures; 22) developments under large, multi-year contracts or in relation to major customers in the networks infrastructure and related services business; 23) the management of our customer financing exposure, particularly in the networks infrastructure and related services business; 24) whether ongoing or any additional governmental investigations into alleged violations of law by some former employees of Siemens AG (“Siemens”) may involve and affect the carrier-related assets and employees transferred by Siemens to Nokia Siemens Networks; 25) any impairment of Nokia Siemens Networks customer relationships resulting from ongoing or any additional governmental investigations involving the Siemens carrier-related operations transferred to Nokia Siemens Networks; as well as the risk factors specified on pages 11-32 of Nokia’s annual report Form 20-F for the year ended December 31, 2009 under Item 3D. “Risk Factors.” Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

Nokia, Helsinki – June 16, 2010

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