World's largest mobile phones supplier, with 31% market share at Sept. 30 2004; Strong product offering, high innovative capacity, and strong brand; Large scale and efficient logistics, leading to above-average operating margins; Very low capital-intensive industry, leading to strong free cash flow; and Negligible debt and €11.8 billion gross cash and equivalents at Sept. 30, 2004. Very aggressive competition in 2004, resulting in a marked drop in market share, profitability, and operating cash flow; Portfolio gaps, resulting in significant delays in bringing camera phones, color screens, and clamshell models to market; Rapid technological evolution, including transitions to third-generation (3G) wireless technology and from voice-centric hardware to data-centric software; Nokia's weak market positions in the U.S. code division multiple access (CDMA)
