The world's biggest mobile handset firm, Nokia, announced a reorganisation on Wednesday aimed at taking advantage of future growth areas and increasing its efficiency. The Finnish-based firm will divide into three units - Devices, Services & Software and Markets - a move analysts said should improve its product line-up and remove some internal rivalry.
The units will replace its current divisions of Mobile Phones, producing its cheapest models, Enterprise Solutions, which has products for the business market, and Multimedia, which makes cellphones with advanced cameras and music players.
Nokia said the new organisation, effective next January 1, would help it manage its product line-up more effectively, speed up the time it takes to get new models to market and boost its efficiency in marketing and developing products.
Analysts said the new structure removed somewhat artificial barriers which had led to some duplication as well as competition over resources.
"It should help them achieve a smoother (product) line-up and better focus on what is offered, particularly in smartphones, in the different divisions," said Lauri Rosendahl, analyst at Carnegie in Helsinki. "They should also get some synergies from putting together the three business divisions. Definitely I think they will have cost benefits from the research and development side."
Nokia will also restructure its financial reporting into two segments, Devices & Services and Nokia Siemens Networks, its infrastructure joint venture with Germany's Siemens. Chief Executive Olli-Pekka Kallasvuo said the new structure could help Nokia take advantage of new trends in mobile devices, consumer Internet services and business applications, and boost the effectiveness of investments and operational efficiency. The company gave no information on expectations of any cost-savings that might result from the changes.