Nokia plans to fold all its mobile phone development efforts into a single new business unit, reflecting the growing importance to its business of multimedia and internet-enabled devices.
The new Device unit, as it will be called, will produce all of Nokia's mobile devices, including more traditional mobile phones, as well as internet-enabled devices like the N series. The products were previously produced by three separate divisions, for mobile phones, multimedia and enterprise solutions.
As part of the reorganisation Nokia will also create two other new divisions, called Software & Services, and Markets, to replace its existing structure. The divisions will all be launched on January 1, 2008, the company announced yesterday.
"When we introduced the (current) structure in early 2004, the market was still very voice centric at the time," said Nokia spokeswoman Arja Suominen. "The other areas were small but have grown much since then. So it makes sense to bring all these together in one unit."
Nokia said the changes will help to make its product development and manufacturing operations more effective and reduce the time it takes to bring new products to market.
The move comes as Nokia faces new low-cost challengers from Asia, as well as markets with high levels of phone penetration in developed countries.