Saying it’s reorganizing itself to bolster business, the world’s leading mobile device maker today announced that it would cut nearly 600 employees, about three-quarters of those coming from its sales and marketing units.

Officials at Finland-based Nokia say they’re also downsizing a company research center, relocating some offices and cutting back on their global process operations group.
 
According to Juha Akras, the company’s senior vice president of human resources, the changes are part of Nokia’s  “constant renewal where it is important to be close to our customers and ensure that our people are able to focus on the key business priorities.”
 
“Also, our aim is to find alternative work within Nokia for as many employees as possible,” Akras said.
 
The changes come as Nokia unveils seven phone models for emerging markets, part of what Reuters  reporter Tarmo Virki calls a “push as emerging markets slow.”
 
The new phones include the 1202 – pictured at right – a follow-up to Nokia’s top-selling 1200 model that will sell for some for the equivalent of about $32, and two models with e-mail support priced at the equivalent of about $52.
 
“Emerging markets are a stronghold for the world’s top cell phone maker, but it has lately seen increasing competition from vendors such as China’s ZTE  and Samsung Electronics,” Virki reports.
 
Nokia’s change comes as an IT market research firm reports an 8.2 percent third quarter year-over-year increase for mobile handsets.
 
Though some mobile device makers fared better than others, officials at ABI Research  say, the handsets’ value as more than fashion accessories has fueled market growth.
 
According to the firm’s research director, Kevin Burden, Nokia stumbled somewhat and saw its market share shrink to about 38 percent, while Motorola and LG also were net losers, with market shares of about 8 and 7 percent, respectively.

“Winners include Samsung  (16.6 percent), Apple (2.2 percent), and RIM (2.0 percent),” Burden said. “Smartphones are truly capturing the imagination of the buying public which is benefitting vendors with highly desirable smartphones.”
 
Here’s how ABI breaks down vendor market share for the quarter in its report, titled “Mobile Devices Market Sizing and Share”:

According to Reuters, handset makers are seeking more and more opportunities to focus on emerging markets as slowing economies have started to hurt sales in developed markets.
 
“We continue to be in a very strong position in emerging markets,” Alex Lambeek, head of Nokia’s entry level phones, reportedly told Reuters in an interview. “I would say we are changing the game. It’s not only devices, it’s also about services,” he said.

Source:TMCnet