Nokia's new CEO outlines neutral stance in superpower technical wars

08. 08. 2020 Saturday / By: Robert Denes / Business / Exact time: BST / Print this page

(Bloomberg) - Pekka Lundmark, CEO of Nokia Corporation, said the Finnish network manufacturer respects geopolitics as the technology industry becomes more and more involved in trade and political conflicts.

Read this interview this time conducted by Bloomberg with Pekka Lundmark, the new CEO of Nokia. There’s a saying, “a bird doesn’t do summer” so I don’t trust the belief that Nokia’s new leader will get the company to the top again. But I’m also looking forward to Nokia succeeding and re-emerging in the mobile industry.

Lundmark, who took over Nokia's government on August 1, is in a tense position that bases its position on China - and Nokia's rival, Huawei Technologies Co. - against the United States and other governments seeking to ban the Chinese supplier for a fifth of them. generation mobile networks.

“I think it would be a big mistake for individual businesses to start managing the policy agenda,” he said in an interview on Friday. “It’s very important for businesses to play straight and stay where they would stay. We have no political agenda, we are a pure business."

U.S. President Donald Trump’s administration is putting pressure on Allies against the use of Huawei’s equipment, which it says could pose a threat to network security. Huawei has strongly and repeatedly denied these allegations. Huawei isn’t the only targeted Chinese tech company: on Thursday, Trump moved to ban Chinese-owned TikTok and WeChat social media apps.

Huawei’s problems have led to Nokia’s business, the company said last month. The United States and the United Kingdom have indicated that they are considering some support for Nokia and its Swedish competitor, Ericsson AB, to ensure competition in the supply of 5G equipment.

Nokia lags behind its rivals in 5G competition and this has been set to improve Lundmark. In five days of his new job, the CEO said he’s busy talking to clients and starting to map out progress.

“My goal is clearly to be able to say something more specific before the end of the year” about the next steps: “What further steps do we need to take in the market,” he said.

This seems like a long time for shareholders when the share price has fallen by 40% since its peak in 2015 (the day it announced its acquisition of Alcatel-Lucent). Since early March, they have been waiting for Lundmark to take over the reins, and many have expressed hope that he will act quickly to begin the turnaround. Lundmark said he is planning an investor day “at the right time” - a rare event at Nokia that has held only two capital market days since 2009 and the latter in 2016.

“Nokia’s performance has surpassed its waves and the company has undergone a fundamental transformation,” he said. "But I'm also cautiously optimistic about the situation."


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