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MOT ahead of NOK in U.S. market. Jorma intends counter-attack:

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Nokia CEO reviewing NAmerica product portfolio in bid to stem falling volumes

01.27.05, 10:31 AM ET

AFX News Limited

HELSINKI (AFX) - Nokia Corp chief executive officer Jorma Ollila said that the company is in the "fundamental process" of renewing its product portfolio in North America to help combat falling volumes in the world's top market.

He admitted that the fall in demand in North America is partly due to shortcomings in the number of Nokia phone models equipped with the code division multiple access (CDMA) technology, which is used there.

"We don't have the portfolio in place in which we can do business. (But) we are in the fundamental process of renewing (it) there," he told a conference call.

"Work is in progress. We have identified the problem and we will be back."

Nokia had said in its fourth quarter earnings report that its volume growth in 2004 was fastest in Latin America, China and Asia Pacific, moderate in Europe, but that it was partially offset by volume declines in North America.

Meanwhile, Nokia's key rival Motorola Inc had said in conjunction with its quarterly earnings report that it is already ahead of Nokia in terms of US share, and that it aims to surpass Nokia's market position outside US also.

Nokia's Ollila also said that it is still too early to predict when Nokia will be on a path of consecutive quarterly profit growth, but added he does not see this during the first half of the year at least.

"We will have to see, but I think we will need a little more than one or two quarters," Ollila said.

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Copyright 2005 AFX News Limited. All Rights Reserved.


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