Position as the world's leading supplier of mobile phones, with a 39% market share; Strong product offering, high innovative capacity, and strong brand; Large scale and efficient operations, leading to strong operating margins; Low capital-intensive operations, leading to strong free cash flow generation; and Negligible financial debt and €9.9 billion gross cash and equivalents at June 30, 2003. Relative maturity and slowing growth rates in the mobile handsets industry; Rapid technological evolution, including the transition to third-generation (3G) technology and a rapid transition from voice-centric hardware to data-centric software; Increasing competition from the consumer electronics and PC industries; Underperformance and cash consumption of Nokia Networks division; and Announced plans to make share buybacks during 2003. The ratings on Finland-based Nokia
