Alex Webb, Columnist

Nokia Has No Excuse for Failing

Big phone carriers are spending on 5G and the Finnish company only has two rivals. These should be ripe conditions for a thriving business.

October 24, 2019 at 10:55 AM UTC

By Alex Webb

Alex Webb is a correspondent for Bloomberg Quicktake. He previously covered the technology, telecoms and media industries in London, San Francisco and Munich.

No tower of strength.
Photographer: Bloomberg/Bloomberg

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Nokia Oyj only really has two competitors in the telecoms equipment business, and one of them — China’s Huawei Technologies Co. — has been all but banned from much of the market. At the same time, phone companies are opening their checkbooks for a new generation of 5G technology that’s only supplied by Nokia, Huawei and the other big rival, Ericsson AB.

Pretty ripe conditions for a thriving business? Not for Nokia. The Finnish company on Thursday cut its profit outlook for this year and next, and suspended a dividend payout. Nokia shares fell the most in 19 years. Chief Executive Officer Rajeev Suri urgently needs to stop the bleeding.