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Nokia targets net gains
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October 12, 1999: 4:03 p.m. ET
CEO Jorma Ollila says the Web is the next step in the firm's grand plan
By Staff Write Rod Cant
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GENEVA (CNNfn) - Nokia boss Jorma Ollila provided evidence Tuesday of why his company's stock has been such a stellar performer.
In an interview with CNNfn, the cell phone company's chief executive officer pointed to continued explosive growth in cellular handset sales as well as the potential from merging cellular technology with the Internet and online data services.
Nokia (NOK) shares dipped 2 percent in Helsinki Tuesday as investors sought to lock in some of their profits after the stock's 9 percent rise so far in October.
Ollila said he expects 250 million new handsets to be sold during 1999, and that by the end of 2003 there will be 1 billion cellular subscribers worldwide.
Ollila admitted such stellar growth inevitably will level off, but he pointed to new services based on access to the Internet, as well as surging demand for wireless data information, as key drivers for Nokia's growth.
Ollila attributed the company's success, and its ability to avoid the kind of financial mishaps that have bedeviled close rivals Ericsson (ERICY) and Motorola (MOT), to an ability to respond rapidly to a fast-changing market.
"We didn't see mobility and the Internet becoming such a big thing, in 1995," Ollila admitted during an interview at the global communications fair in Geneva. He added however, "We were one of the first to come to the conclusion [that wireless Internet access would surge] about two years ago, and then make the right decisions with our product offering.
"One of the ways in which we've been able to perform better than our competitors is that we're fast to redirect our strategy, if there is a need to," Ollila continued, citing the company's rapid deployment of an Internet-based strategy.
During the Telecom 99 convention this week, Nokia has unveiled alliances with Intel (INTC) to develop digital TV set-top boxes, and with Hewlet-Packard (HWP) to set up a "cyber bazaar."
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