Nokia Oyj CEO Pekka Lundmark yesterday said that he would do “whatever it takes” to catch up with rival telecommunications equipment manufacturers in introducing 5G wireless technology.
Lundmark, who took the top job on Aug. 1, would abandon predecessor Rajeev Suri’s strategy, dubbed “end-to-end,” the Finnish company said in a statement yesterday.
End-to-end sought to provide customers with complete network systems, from physical equipment, such as antennas and optical cables, to software and other services.
Nokia is to adopt “a more focused approach,” the company said, as it looks to break down how it sells to clients and target higher-value sectors.
Nokia shares yesterday fell more than 15 percent in Helsinki trading, after the company reported sales that missed analyst estimates and lowered its outlook for the year.
“We have lost share at one large North American customer — see some margin pressure in that market — and believe we need to further increase R&D [research and development] investments to ensure leadership in 5G,” Lundmark said. “In fact, we have decided that we will invest whatever it takes to win in 5G.”
The Espoo, Finland-based company is seeking to catch up with rivals Ericsson AB and Huawei Technologies Co (華為) after early stumbles in the market for 5G and trouble integrating its giant Alcatel-Lucent purchase from 2016.
Nokia reported sales in the third quarter of 5.29 billion euros (US$6.21 billion), missing analyst estimates for 5.42 billion euros.
The company is well placed to take advantage of bans on some vendors, Lundmark told reporters by telephone.
A growing number of governments are placing restrictions or outright exclusions on equipment made by Huawei.
Nokia, which a year ago paused its dividend to funnel more cash to R&D, said that payouts are likely to resume once its net cash position improves to about 2 billion euros.
Nokia said that it ended the second quarter with a net cash balance of 1.9 billion euros.
“Our goal is to better align with the needs of our customers and through that, increase accountability, reduce complexity and improve cost-efficiency,” Lundmark said.
Nokia downgraded its prospects, saying that it expects to underperform in a declining market.
It had previously said that it expected a “flattish” market for this year.
Next year, it expects an adjusted operating margin in the range of 7 to 10 percent, missing the average analyst estimate of 10.6 percent.
For this year, it now sees adjusted earnings per share of 0.20 euros to 0.26 euros, compared with 0.20 euros to 0.30 euros previously, and an adjusted operating margin of 8 to 10 percent, compared with an earlier 8 to 11 percent.
JITTERS: Nexperia has a 20 percent market share for chips powering simpler features such as window controls, and changing supply chains could take years European carmakers are looking into ways to scratch components made with parts from China, spooked by deepening geopolitical spats playing out through chipmaker Nexperia BV and Beijing’s export controls on rare earths. To protect operations from trade ructions, several automakers are pushing major suppliers to find permanent alternatives to Chinese semiconductors, people familiar with the matter said. The industry is considering broader changes to its supply chain to adapt to shifting geopolitics, Europe’s main suppliers lobby CLEPA head Matthias Zink said. “We had some indications already — questions like: ‘How can you supply me without this dependency on China?’” Zink, who also
At least US$50 million for the freedom of an Emirati sheikh: That is the king’s ransom paid two weeks ago to militants linked to al-Qaeda who are pushing to topple the Malian government and impose Islamic law. Alongside a crippling fuel blockade, the Group for the Support of Islam and Muslims (JNIM) has made kidnapping wealthy foreigners for a ransom a pillar of its strategy of “economic jihad.” Its goal: Oust the junta, which has struggled to contain Mali’s decade-long insurgency since taking power following back-to-back coups in 2020 and 2021, by scaring away investors and paralyzing the west African country’s economy.
BUST FEARS: While a KMT legislator asked if an AI bubble could affect Taiwan, the DGBAS minister said the sector appears on track to continue growing The local property market has cooled down moderately following a series of credit control measures designed to contain speculation, the central bank said yesterday, while remaining tight-lipped about potential rule relaxations. Lawmakers in a meeting of the legislature’s Finance Committee voiced concerns to central bank officials that the credit control measures have adversely affected the government’s tax income and small and medium-sized property developers, with limited positive effects. Housing prices have been climbing since 2016, even when the central bank imposed its first set of control measures in 2020, Chinese Nationalist Party (KMT) Legislator Lo Ting-wei (羅廷瑋) said. “Since the second half of
RE100 INITIATIVE: Exporters need sufficient supplies of renewable energy to meet their global commitments and remain competitive, the economics ministry said Local export-oriented manufacturers, including Taiwan Semiconductor Manufacturing Co (台積電), require sufficient supplies of green energy to maintain their competitiveness and regulations already ensure that renewable energy development adheres to environmental protection principles, the Ministry of Economic Affairs said yesterday, as the legislature imposed further restrictions on solar panel installations. The opposition-led Legislative Yuan yesterday passed third readings to proposed amendments to three acts — the Environmental Impact Assessment Act (環境影響評估法), the Act for the Development of Tourism (發展觀光條例) and the Geology Act (地質法) — which would largely prohibit the construction of solar panels in some areas. The amendments stipulate that ground-mounted solar
RSS