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PCS'98: The Personal Communications Showcase (PCS '98) opens in Orlando:
September 23, 1998
Nokia raises subscriber estimates
- reiterates confidence in current quarter outlook
Nokia today confirmed its confidence in the current quarter outlook, and announced that it has increased its estimate for long term growth in the mobile subscriber market.
"Strong market development in 1998 has re-enforced our confidence in the outlook for the 3rd quarter and has, again, resulted in an upward revision of our long-term mobile subscriber estimates", said Jorma Ollila, President and CEO of Nokia. "We now estimate that there will be about one billion subscribers in the year 2005 and that a substantial portion of the phones sold that year will have multimedia capabilities", said Ollila.
Nokia is demonstrating its capabilities and vision for the third generation wireless standard as well as a number of new products and services at the PCS'98 industry show opening in Orlando (Florida) today.
With an estimated 250 million mobile subscribers at mid-year 1998, strong subscriber growth is expected to continue. "In addition to stronger subscriber growth than previously foreseen we have also raised our replacement assumptions, with the replacement market reaching 50% of all units sold at the turn of the millennium", said Ollila.
Previously used forecasting methods have been based on market saturation assumptions, which have already been exceeded in leading markets, including Finland, which passed the 50% mark in mobile phone penetration last month. The emergence of completely new applications, such as smart traffic products and data and multimedia-enabled terminals, will extend wireless beyond mere voice communications.
"The favorable development of a number of initiatives where Nokia has played an important role, such as Bluetooth, the WAP forum and the establishment of Symbian, has increased the visibility of the significant role that data will play in wireless in just a few years time. We have been at the very forefront of this development and we feel we are well placed to benefit from this growing market opportunity", said Ollila.
Use of data is expected to grow fast in present mobile networks. The new High-Speed Circuit Switched Data capabilities feature raises the basic data rate in GSM to 14.4 kbit/s and allows for multi-time slots bringing speed up to 56 kbit/s.
Nokia has also successfully completed the first trial call with a Nokia-made WCDMA terminal on NTT DoCoMo's trial specification. The call was made last month at Nokia's R&D unit in Yokosuka Research Park, Japan. Nokia aims to be among the first manufacturers to launch WCDMA terminals in Japan and Europe in 2001-2002.
Nokia is a broad-scope communications company supplying mobile phones, mobile and fixed telecommunications networks, wireless data communications solutions, multimedia terminals and computer monitors. In 1997, net sales totaled FIM 52.6 billion ($9.8 billion). Headquartered in Finland, Nokia is listed on the NYSE (NOK.A), has sales in 130 countries and employs more than 41,000 people worldwide.
- - - Certain statements set forth above which are not historical facts, including, without limitation those regarding future industry trends, the timing of product introduction, and expectations for growth and profitability, are forward-looking statements. Because such statements involve risks and uncertainties, actual results may differ materially from the results currently expected by the Company. Factors that could cause differences include, but are not limited to (i) general or regional economic conditions, including the rate of economic growth in the Company's principal geographic markets or fluctuations in exchange rates; (ii) industry conditions, such as the strength of product demand, the intensity of competition, pricing pressures, the acceptability of new product introductions, the introduction of new products by competitors, changes in technology or the ability of the Company to source components from third parties without interruption and at reasonable prices and the financial condition of the Company's customers; (iii) operating factors, such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development or inventory risks due to shifts in market demand, as well as the risk factors specified herein under "Item 1, Description of Business - 1.7 Business Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 1997 filed with the Securities and Exchange Commission.
Contact information:
Nokia Corporate Communications
Tel. +358 9 1807 495
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