Nokia Double Profit Strategy in Q3 2021

Nokia, a Finnish telecommunications equipment maker, said it could double its profit in the third quarter of this year, despite a worldwide shortage of computer chips. Nokia mentioned in a statement that its net profit was 342 million euros in the period from July to September and increased by a total of 77 percent.

According to CEO Pekka Lundmark, uncertainty surrounding the global semiconductor market will limit visibility in the fourth quarter and 2022.

According to Pekka, the company works closely with suppliers and customers to ensure access to components. With a 2 percent increase in annual net sales to 46,900 million, the Finnish group repeated year-round guidelines, raising 10-12 percent in June.

Lundmark has been credited with turning the networks giant’s fortunes around in a battle with Sweden’s Ericsson and China’s Huawei for dominance in the 5G equipment market.

By the time it took office in mid-2020, Lundmark had significantly reduced jobs, while savings had grown into more competitive technologies. The group partially benefited from the collapse of Ericsson, which saw its Chinese market share collapse, when Sweden banned Huawei from the 5G rollout.

Nokia’s Revenue

Nokia’s net sales in 2020 amounted to 21.9 billion euros. The corporation serves in more than 130 countries. It has invested €129 billion in R&D over the last two decades. Nokia is reaching out to solve global problems through technology leadership and a trusted partnership. The company brings together people and devices from around the world. Networks go beyond connectivity to provide intelligent systems with self-optimization at both the local and global levels. Nokia creates significant interactions to enhance human progress.

The corporation was founded in 1865. Nokia has headquarters in Finland. In 2020, the company will employ 92,000 people in more than 100 countries.

Nokia is focusing on technology development and large-scale telecommunications infrastructure since the 1990s. It has made a significant contribution to the mobile phone industry. In particular, it contributed to the development of 3G, GSM, and LTE standards. For a decade since 1998, Nokia has been the largest seller of mobile phones and smartphones worldwide. In 2018, It was the third biggest network machinery manufacturer in the world.

In June 2020, Nokia won a 5G contract worth about $450 million to build the following generation telecom operator network as the sole supplier. Moreover, In October, it announced an agreement with NASA to build a 4G mobile network. Astronauts on the moon will be able to use it. The $14.1 million contract signed through Bell Labs, and the company should start in 2022.