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Staying connected

Nokia Corp., the Finnish communications giant, may very well be a global player, with 1.2 billion consumers carrying its mobile phones.

But just as all politics is local, so, too, it turns out is telecommunications. And Mark Louison – president of Nokia Inc. in White Plains, the North American arm of the multinational corporation – sees the changing industry as a prime opportunity for Westchester County to attract companies in what he calls “the mobile applications ecosystem.”

In other words, companies that make software, which is where it’s at for Nokia Inc., which operates under Nokia Corp. and is concerned with the sale of devices and services.

Over the last five years, Nokia Corp. has invested more than $50 billion in research and development and between $10 billion and $12 billion in mergers and acquisitions.
“It’s a very software-intensive game,” Louison said.

But nevertheless one that Nokia – the number one maker of mobile phones – must play if it is to remain competitive with Apple’s iPhone and other cutting-edge products.
“We have to transform the company from a manufacturer of devices to one offering true mobile computer solutions,” he said.

That’s because the world of communications has changed. The Internet has gone mobile, Louison says. The line between phone and computer is fluid. And consumers want a phone that is the telecommunications equivalent of a Swiss Army knife, he said.

Seated in a black and amber conference room in Nokia Inc.’s White Plains headquarters – whose angular wood and glass construction is a model of sleek Nordic design – Louison picks up the Nokia smartphone belonging to Laurie Armstrong, the company’s director of communications. It’s a Mode for T-Mobile, which has two modes, one for your personal applications and one for your professional apps.

“There’s more computer power in this smartphone than there was on Apollo 11,” Louison says of Mode, which retails for $49 to $69.

Another product Nokia has developed with T-Mobile is Nuron, which he said has democratized the smartphone with a popular price range of $29 to $49.

Nokia also creates devices in partnership with AT&T and Verizon Wireless. These partnerships – as opposed to Nokia merely putting its products out there, as it does in other markets – is what makes the American market unique and challenging, Louison said.

It’s an observation that was echoed recently in a conference call from suburban Helsinki as Nokia Corp. announced second-quarter results. These were something of a mixed bag at best, with sales up 1 percent, but earnings down 40 percent.

Still, Louison said, “Last year’s recession affected many, but our industry less than others. The mobile device has become a necessity.”

Where the recession proved most telling was in the longer lag time in consumers replacing their phones. Nevertheless, he said the shorter replacement cycle is coming back.

Indeed, Louison sees plenty of growth ahead for his industry and his company, along with Westchester.

“For our global company with its North American ambitions,” he says, “this is a good spot.”

Nokia Corp. at a Glance

Headquarters: Keilaniemi, Espoo, outside Helsinki, Finland

Financial picture: In 2009, Nokia’s net sales were 41.0 billion euros and operating profit 1.2 billion euros.

Personnel: Roughly 129,000 worldwide (about 6,000 in the United States and Canada, some 400 of them in White Plains, headquarters of Nokia Inc., the corporation’s North American arm)

Market reach: More than 160 countries; 1.2 billion people carry a Nokia phone, between 1 and 1 1/2 million buy one each day.

Challenges: With last quarter’s earnings down and pressure to take on Apple iPhone mounting, there is talk that Olli-Pekka Kallasvuo’s time as CEO may be coming to an end.

American outreach: Locally, Nokia Inc. works with Green Chimneys, a Brewster-based nonprofit that uses animals and the natural world to help children face a variety of challenges. The company also works with the Pearson Foundation to create programs for classrooms and community centers nationwide through the Mobile Learning Institute.

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