Nokia intends to review the growth paths of its various businesses and consider alternatives, such as divestment.
Digital Desk: While the manufacturer of telecom equipment concentrates on ambitious growth, Nokia announced plans to alter its brand identity for the first time in nearly 60 years on Sunday, complete with a new logo.
The word Nokia is represented by five different shapes in the new logo. Depending on the purpose, the previous logo's signature blue colour has been replaced with a variety of colours.
According to Chief Executive Pekka Lundmark, "There was the association to cellphones and today we are a business technology company."
On the eve of the annual Mobile World Congress (MWC), which begins in Barcelona on Monday and lasts until March 2, he was addressing before to a business update by the company.
Lundmark devised a three-stage strategy in 2020 after assuming leadership of the faltering Finnish business. The stages were reset, accelerate, and scale. Lundmark stated that the second stage has started now that the reset stage is over.
Nokia's primary focus is now on selling equipment to other firms, though it still hopes to expand its service provider sector, where it sells equipment to telecom companies.
As per Lundmark, "We achieved really good 21% growth in enterprise last year, which is presently about 8% of our revenues, (or) 2 billion euros ($2.11 billion) roughly." We want to increase that to double digits as soon as we can.
To sell private 5G networks and equipment for automated factories to consumers, particularly in the manufacturing sector, major technology companies have partnered with telecom equipment manufacturers like Nokia.
Nokia intends to review the growth paths of its various businesses and consider alternatives, such as divestment.
"The message is very clear. "We only want to be involved in businesses where we can see global leadership," said Lundmark.
Nokia's move towards factory automation and datacenters will pit them against big tech companies like Microsoft and Amazon.
"There will be a variety of cases; sometimes they will be our partners, sometimes they will be our customers... and I am sure there will be times when they will be competitors."
The telecom equipment market is under pressure, with demand from high-margin markets such as North America being replaced by growth in low-margin India, prompting rival Ericsson to lay off 8,500 employees.
"India is our fastest growing market with lower margins - this is a structural change," Lundmark said, adding that Nokia anticipates a stronger second half of the year in North America.
In the era where everyone is immersed in technology and modern equipments, Karishma is seen holding onto her roots, embracing art and culture, the way it is
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