ontarioguy
18-06-2003, 00:11
[SOURCE TORONTO STAR]
Handset can't handle video calls, executive admits Industry struggles with 3rd year of slow growth.
The world's top mobile-phone maker, Nokia Oyj, sounded a cautious note on third-generation phones yesterday, saying it expected the market for 3G handset sales to reach high volumes only in the second half of 2004.
Nokia, at an annual strategy update for journalists, also unveiled two new handsets for existing second-generation networks, as well as a digital camera and a deal with Kodak to print snapshots taken by picture phones.
Much attention was paid to its expectations for third-generation systems, which promise fast Internet access, video messages and other advanced wireless services on mobile phones. Nokia said last week it had started selling its first 3G phone, but now played down the impact that 3G handsets would have on communications.
"The high volumes will be in the second half of next year," said Nokia Mobile Phones president Matti Alahuhta. Nokia officials said large volumes meant millions of phones.
European operators said last week that all 3G phones from all manufacturers should be kept from stores, because they are unreliable, expensive, bulky and offer limited services.
Nokia's Mobile Phones executive vice-president Anssi Vanjoki acknowledged Nokia's 3G handset could not handle video calls. Networks, services and handsets to bring this feature to consumers would be ready only in the second half of 2004.
The handsets can send short video clips. "It's better to take full advantage of things that we can do than wait," he said in an interview. Rivals' 3G phones are able to handle video calling, but fall short in other aspects.
Analysts said Nokia's reluctance to aggressively launch 3G phones reflects teething problems the industry still faces, even after two years of delays.
"It's a reflection of concerns about quality and service of 3G networks," said Ben Wood at market research firm Gartner.
Analyst Jussi Uskola at Nordea Securities, who rates Nokia's stock as "buy," said: "It shows first of all that 3G is anything but a mature technology."
Nokia, which lags U.S. and Japanese rivals Motorola Inc. and NEC Corp. in launching 3G handsets, expects next year to grab the same 35 per cent global market share in third-generation as it has in current second-generation phones, Alahuhta said.
Nokia's new models included a camera phone, dubbed the 6600, in its range of business phones, which will cost 500 euros (about $795 Canadian).
It also launched a new colour-screen phone in its mass-market 3000 series, the 3100. Nokia phone launches are important as the firm produces more than one in three phones sold worldwide. It has the industry's highest profit margin as a result of this massive scale, which is mostly generated by its cheaper models in the 3000 series.
The wider handset industry, however, has been struggling with three years of slow growth and declines, and Nokia is eager to get the market going again with new features and services.
Nokia's Networks president Sari Baldauf added that all data services combined, including text and picture messages, news clips and ring tones, were expected to generate 30 per cent of an operator's total revenue per user by 2007 from 15 per cent now
Handset can't handle video calls, executive admits Industry struggles with 3rd year of slow growth.
The world's top mobile-phone maker, Nokia Oyj, sounded a cautious note on third-generation phones yesterday, saying it expected the market for 3G handset sales to reach high volumes only in the second half of 2004.
Nokia, at an annual strategy update for journalists, also unveiled two new handsets for existing second-generation networks, as well as a digital camera and a deal with Kodak to print snapshots taken by picture phones.
Much attention was paid to its expectations for third-generation systems, which promise fast Internet access, video messages and other advanced wireless services on mobile phones. Nokia said last week it had started selling its first 3G phone, but now played down the impact that 3G handsets would have on communications.
"The high volumes will be in the second half of next year," said Nokia Mobile Phones president Matti Alahuhta. Nokia officials said large volumes meant millions of phones.
European operators said last week that all 3G phones from all manufacturers should be kept from stores, because they are unreliable, expensive, bulky and offer limited services.
Nokia's Mobile Phones executive vice-president Anssi Vanjoki acknowledged Nokia's 3G handset could not handle video calls. Networks, services and handsets to bring this feature to consumers would be ready only in the second half of 2004.
The handsets can send short video clips. "It's better to take full advantage of things that we can do than wait," he said in an interview. Rivals' 3G phones are able to handle video calling, but fall short in other aspects.
Analysts said Nokia's reluctance to aggressively launch 3G phones reflects teething problems the industry still faces, even after two years of delays.
"It's a reflection of concerns about quality and service of 3G networks," said Ben Wood at market research firm Gartner.
Analyst Jussi Uskola at Nordea Securities, who rates Nokia's stock as "buy," said: "It shows first of all that 3G is anything but a mature technology."
Nokia, which lags U.S. and Japanese rivals Motorola Inc. and NEC Corp. in launching 3G handsets, expects next year to grab the same 35 per cent global market share in third-generation as it has in current second-generation phones, Alahuhta said.
Nokia's new models included a camera phone, dubbed the 6600, in its range of business phones, which will cost 500 euros (about $795 Canadian).
It also launched a new colour-screen phone in its mass-market 3000 series, the 3100. Nokia phone launches are important as the firm produces more than one in three phones sold worldwide. It has the industry's highest profit margin as a result of this massive scale, which is mostly generated by its cheaper models in the 3000 series.
The wider handset industry, however, has been struggling with three years of slow growth and declines, and Nokia is eager to get the market going again with new features and services.
Nokia's Networks president Sari Baldauf added that all data services combined, including text and picture messages, news clips and ring tones, were expected to generate 30 per cent of an operator's total revenue per user by 2007 from 15 per cent now