Nokia to Sacrifice Network Margins to Improve 5G Technology
- Low margins are a result of increased R&D spending: Lundmark
- Finnish company’s overall outlook for 2021 is unchanged
Pekka Lundmark
Photographer: Roni Rekomaa/BloombergThis article is for subscribers only.
Nokia Oyj said it expects the margin for its networking business to be zero next year as it develops more competitive products for fifth generation wireless technology.
“We are now putting so much money in R&D that we are sacrificing a little bit of the short-term profitability to get to where we want to be in the long term,” Chief Executive Officer Pekka Lundmark said in an interview on Wednesday after Nokia unveiled more details about its strategic overhaul. Still, “we are only taking contracts that make commercial sense,” he said.
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Nokia to Sacrifice Network Margins to Improve 5G Technology