Pressure to replace aging mobile phones will offset weakening in the US or European economies, enabling Nokia to meet full-year financial targets, its chief executive Mr Jorma Ollila told investors this week.

The head of the Finnish mobile communications equipment maker told US money managers at an investor conference that new features such as picture messaging, colour screens and internet-friendly networks would shore up Nokia's second-half revenues, even if major economies continued to deteriorate.

"We have taken a very conservative look at the US and at the European economy as \ might evolve," the head of Europe's most closely watched technology company assured jittery investors during a presentation before the Piper Jaffray Technology & Telecommunication conference here.

Working in Nokia's favour are pressures to replace phones dating from the industry boom year of 2000, when 405 million phones were sold worldwide, Mr Ollila noted.

The company plans to cut some 5 per cent of staff at its struggling networks unit, moving to cut costs amid persistently grim demand from telecom operators. - (Reuters)