Raising sales volumes a top priority for Nokia CEO

With its new Windows smart phones just hitting the market, Nokia Corp. said Wednesday its top priority now is to drive up sales volumes. "We want to see volumes begin to move. We need to get developers recognizing there is a growing opportunity here, so that we attract applications," Nokia Chief Executive Stephen Elop said on Wednesday at an investor conference in Barcelona.

On stage at the event, Elop said that, by lowering its operating expenses and increasing volumes, the company will be able to boost its bottom line.

The next stage, he added, would be to increase the company's gross margins, a measure of profitability. The Finnish cellphone giant--once the clear profit and market-share leader in smart phones--has struggled to compete against Apple Inc. and smart phones that run Google Inc.'s Android operating system.

In February, the company said it would replace its own Symbian software, and make smart phones that run Microsoft Corp.'s Windows Phone software. It's also announced at least EUR1 billion in operating expense savings by 2013.

Last month it launched two new Windows-based smart phones, the Lumia 800 and the cheaper Lumia 710. Priced at EUR420 before taxes, the Lumia 800 is cheaper than the iPhone. The Lumia 710 costs EUR270 before taxes.

Elop cited Apple, whose iPhone has swallowed much of the profit in the smart-phone industry, and Google's Android as the company's biggest competition, and said the handset manufacturer needs to ensure that Windows is able to compete against those two challengers.

The two new smart phones Nokia introduced are running Windows updated "Mango" software. They contain some unique software from Nokia such as its Nokia Drive, a personal navigation application.

The CEO said the deal the company struck with Windows earlier this year will allow it to differentiate its handsets even further when Microsoft launches its new Windows 8 software due next year.That should lead to higher prices and profits over time.

Elop also reiterated that the company intends to push Windows smart-phone prices down to kick-start sales. Elop called tablets an interesting opportunity for the company, but declined to say if Nokia would launch its own.