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Inside information: Nokia provides an update on group strategy, 2026 comparable operating margin target and preliminary assumptions for 2024
In 2021, Nokia significantly streamlined its operating model, moving from a matrix organization and creating four P&L-responsible business groups structured around unique customer offerings. Since then, its business groups have increased investments in R&D and made significant progress in strengthening technology leadership.
Nokia comments on AT&T vendor plans
Nokia is aware of AT&T’s plans to commit to an Open RAN deployment in collaboration with other vendors over the next five years. As a result, Nokia now expects revenue from AT&T in Mobile Networks will decrease over the next 2-3 years. AT&T accounted for 5-8% of Mobile Networks net sales year-to-date in 2023. The already announced action Nokia is taking to reduce its cost base is expected to partially mitigate the impact of AT&T’s decision.
The patent dispute between Nokia and Oppo may finally be over
The legal drama between Nokia and Oppo, which used Nokia's patents without paying a fair fee to Oppo, may finally come to an end. The Chinese Chongqing court has made a first-instance decision in the lawsuit filed by Oppo, which is related to the ongoing FRAND dispute with Nokia and Related to usage fees for Nokia's Standard Essential Patent portfolio. Oppo, which is behind OnePlussa, refuses to pay the price Nokia asked for the use of the patents because the Chinese company said they were too high.
Nokia shares fall due to market rumours
Rumors of AT&T's intention to drop Nokia as a device supplier would be a major setback for Nokia, if true. Nokia shares were clearly down on Monday. The background is based on rumors that Nokia is about to lose its stake to AT&T, the largest carrier in the United States.
Where there's smoke, there's usually fire - Nokia could lose its stake in US carrier AT&T
AT&T is the largest telecommunications company in the United States, so if the rumors come true, it would be a very unpleasant setback for Nokia in the North American market, which is important for the profitability of mobile phone networks.
Nokia phones dominate the global phone market
According to the latest IDC report, HMD Global has taken the top spot in shipments of Nokia phones in the third quarter of 2023. With this, HMD currently owns 30.7 percent of the global phone market, which represents a volume increase of 22.4 percent compared to the previous quarter.