Petroc Taylor
Research expert covering global developments in the use of data
Get in touch with us nowNokia reorganizes its network business
Nokia’s exit from the mobile handset industry came amid intense competition in the smartphone market. While Apple and Samsung were finding success with iPhone and Galaxy devices, poor sales for Nokia’s Windows based Lumia series in 2011 and 2012 saw the firm’s net sales tumble, with the company eventually selling its smartphone business to Microsoft in 2013. Nokia’s ensuing business transformation saw its Networks segment take center stage, with a reorganization in 2021 forming three new network centered divisions: Mobile Networks, Network Infrastructure, and Cloud and Network Services. The mobile networks segment accounted for the largest share of net sales in 2023, driven by the provision of radio access network (RAN) and 5G products and services.Nokia loses a key U.S. contract to Ericsson
Nokia’s decision to focus its efforts on next generation networks has brought it in direct competition with a range of multinational players, notably Huawei and Ericsson, with these firms often competing for major infrastructure contracts. Nokia has been ranked as the second largest network infrastructure provider behind Huawei, and the fourth largest enterprise network infrastructure provider behind Cisco, Huawei, and HPE. Nokia experienced a setback in 2023, with the U.S. mobile network operator AT&T choosing Ericsson to deploy its open radio access network (Open RAN). The loss of this deal caused significant disruption to Nokia’s Mobile Networks division, underlining the volatile nature of the infrastructure business.While Nokia’s transition away from consumer hardware has secured its survival, the company considers its transformation far from complete. Moving forwards, Nokia has identified several strategic imperatives, including the expansion of the company’s communications service provider business, and the exploration of new business models. In addition, the company has stated its desire to compete on the quality of its ESG credentials, identifying the role that such metrics will play in securing key clients in the years to come.
