"We are also reinvesting a lot of that into 5G to improve our product position. Its two remaining western competitors: Ericsson and Nokia. All rights reserved. Resistance to rival Huawei also helps. Nokia will deploy its AirScale mmWave radio products with Cloud RAN capabilities to support U.S. Cellular’s customers with 5G and IoT services and to support new business models such as fixed wireless access ; U.S. Cellular’s enhanced 5G network will meet the growing demand for capacity and speed today and in the future as 5G use cases evolve "We will only take deals where we see a good medium- to long-term profitability profile. Today, Nokia makes some of … "Expanding the use of the ReefShark family is driving lower product costs, which is driving a better performance and an increased confidence in the overall portfolio, which then allows you to be more disciplined when it comes to going after deals," Kristian Pullola, Nokia's chief financial officer, told Light Reading.Due to leave the company as part of its management overhaul, Pullola said Nokia remained on track to slash annual costs by around 500 million ($592 million) by the end of this year compared with the 2018 figure, despite some unfavorable currency movements.Huawei and ZTE, a smaller Chinese vendor, picked up about 90% of that work, with Ericsson landing the remainder. Nokia's strategic shift in 2014 and its effective decision-making since then puts Nokia stock in a strong position to ride the 5G wave. "We are taking a prudent position in China," he told reporters on a call earlier today. Huawei and ZTE, a smaller Chinese vendor, picked up about 90% of that work, with Ericsson landing the remainder. Nokia expects the overall market to be "flat" this year, and is now guiding for an operating margin of 9.5% for the year, up from 9% previously. However, more significantly, in the short run, it will result in the growth of mobile broadband users.©2020 InvestorPlace Media, LLCNokia stock has also been on a downward slump since suspending its dividend last year. "Our profitability will be better, and our cash will be better, which we outlined by upgrading margin expectations, but it does mean we will perform less than the market. It now primarily focuses on being a network-provider and offering related infrastructure and services. Copyright © 2020 InvestorPlace Media, LLC.
Now, the wait is finally over and Nokia stock shows plenty of long-term promise.
Figures show that sales plummeted 41% in China, to just 302 million ($358 million), after Nokia missed out on the award of lucrative contracts for the rollout of 5G radio access networks.Suri said that recent cash generation, leaving Nokia with about 7.5 billion ($8.9 billion) in total cash at the end of the second quarter, would help it to invest in research and development and weather the COVID-19 storm. "As major rivals either increase or maintain spending in this area, Nokia's networks business cut investments by 4% in the first half, to 1.46 billion ($1.73 billion).That helped Nokia to achieve a small net profit of 85 million ($101 million) for the second quarter, compared with a loss of 191 million ($226 million) a year earlier.Nokia's operating margin was still a "respectable 15%," said Crawshaw, adding that figures would have been healthier if Nokia had included intellectual property rights in the total, as rival Ericsson does. All rights reserved. "Our profitability will be better, and our cash will be better, which we outlined by upgrading margin expectations, but it does mean we will perform less than the market. Success in the "webscale" and private wireless markets buoyed those numbers, said Suri.Revenues at Nokia Technologies, the part of the company responsible for licensing, were down 11%, to 341 million ($404 million), while operating profit fell 13%, to 282 million ($334 million).© 2020 Light Reading, part of Informa Tech, a division of Informa PLC.The Finnish equipment vendor, which counts Huawei and Ericsson as its main rivals, said the pandemic wiped about 300 million ($355 million) off its second-quarter revenues, which fell 11%, to about 5.1 billion ($6 billion), compared with the year-earlier period. So it makes sense to take a look at Ericsson, because it is playing an important role in setting up high-speed networking infrastructure in …