Pekka Lundmark, Nokia CEO, on the Rebranding
Pekka Lundmark, the CEO of Nokia, spoke ahead of the company's business update at the annual Mobile World Congress (MWC) about the rebranding. Lundmark stated that the company is now a business technology company and not just associated with smartphones. He also outlined the three stages of his strategy for the company: reset, accelerate, and scale. With the reset stage complete, Lundmark said the second stage is beginning, with the main focus now on selling gear to other businesses.
Nokia's Enterprise Growth
Nokia's service provider business, which sells equipment to telecom companies, is still a focus for the company, but the main focus is now on selling gear to other businesses. The company saw a 21% growth in the enterprise, which accounts for 8% of sales, or roughly 2 billion euros, last year. The goal is to take this to double digits as quickly as possible.
Nokia's Focus on Factory Automation and Datacenters
Nokia plans to move toward factory automation and data centers, bringing them into competition with major tech companies such as Microsoft and Amazon. Lundmark stated that there would be multiple cases, some as partners, some as customers, and some as competitors.
Market Pressure and India's Growth
The market to sell telecom gear is facing pressure due to a decrease in demand from high-margin markets such as North America, being replaced by growth in low-margin India. Lundmark stated that India is the fastest-growing market for Nokia, with lower margins, which is a structural change. He also expects North America to be stronger in the year's second half.
