Published on Fri, Aug 24, 2007 at 18:53 | Source : Moneycontrol.com
Updated at Sat, Aug 25, 2007 at 14:20
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Nokia aspires to be a major internet service co
The world's largest phone maker is also the world's largest camera and music device maker. Now, it wants to be a major internet service company as well, reports CNBC-TV18.
The world's largest phone maker, Nokia, is also the world's largest camera and music device maker. Now, it wants to be a major internet service company as well, reports CNBC-TV18.
"The thinking is increasingly to generate service type of revenue, on top of the platform. We are doing that already at the moment. We are selling navigation services to consumers in different markets. So, when the consumer buys a Nokia phone, he/she will get maps free in the phone. We are also selling navigation services in the phone and getting service revenue there, as opposed to the hardware sale or device sale. That is an important opening and I see a lot of opportunity in that area," said Olli-Pekka Kallasvuo, Global CEO, Nokia.
Phones earn Nokia USD 55 billion every year. But the revenue action could soon move as Nokia wants to ring in the future as a services company.
But, for now, phones still rule. With a 36% market share, Nokia sells as many phones as Motorola, Samsung and Sony Ericsson together. Its leadership position is helped in big measure by Motorola's declining sales and piling losses. In the last quarter, Motorola dropped from a 21% global market share to just over 14%.
"I believe high market share is very important. You need to get critical mass. I believe you need 15% to sustain," said Olli-Pekka Kallasvuo, Global CEO, Nokia.
Motorola maybe out of the way, but what about the Apple and the iPhone?
"I think the iPhone will add excitement to the market and make us run harder," said Olli-Pekka Kallasvuo.
"The thinking is increasingly to generate service type of revenue, on top of the platform. We are doing that already at the moment. We are selling navigation services to consumers in different markets. So, when the consumer buys a 
