Nokia to outsource phone chipsets, frees up R&D resources

Posted on Wednesday, Aug 08 2007 @ 16:59 CEST by Thomas De Maesschalck
Nokia announced a change in its business model. The firm says it will increase outsourcing of its chipsets for key mobile phone technologies in order to save costs and free up R&D resources for new projects.
Niklas Savander, head of Nokia's technology platforms unit, told a Q&A session that he believes that the new strategy will 'foster more innovation and competitive pricing in the industry', whilst freeing up the group's own R&D resources.

'We see that (the industry) is consolidating around a few key players...We believe that the actions we are announcing today will have an influence on this industry structure in the future,' he said.
The company has made a deal with STMicroelectronics for modem technology and would like to license the technology to other players too. Nokia also made a non-exclusive supply agreement with Broadcom for standard EDGE chipsets and is in talks with Texas Instruments over the supply of custom-made EDGE chipsets.

The firm also announced that about 200 Nokia employees in Finland and the U.K. will be transferred to STMicroelectronics.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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