Feeds

Bottom falls out of Nokia's network rump

Life after Microsoft looks grim

Boost IT visibility and business value

Nokia Solutions and Networks (NSN) is facing a 19 per cent drop in sales for the last quarter and an even bigger challenge for the coming 12 months: how to win enough new biz to support a company soon to be shorn of its handset division.

NSN will comprise the majority of the company once the sale of the Finnish giant’s once-proud handset business to Microsoft wins regulatory approval.

However, NSN is predicted to report a 19 per cent drop in Q4 2013 sales to €3.2 billion (£2.6bn) and a 17 per cent slide for the year to €11.4bn (£9.4bn), when its financials come out on Thursday, according to Reuters.

These will follow a 26 per cent fall in Q3 2013 sales.

Having seen large infrastructure projects in South Korea and Japan come to an end, NSN desperately needs some new business to help it grow.

That’s not to say the firm is in dire straits.

A major internal restructuring begun in late 2011 reportedly slashed 25 per cent of its employees from the wage bill and refocused the company on higher margin deals.

That kind of future-proofing has enabled NSN to maintain fairly high operating margins of eight per cent in Q3 and a forecast 12 per cent for the last quarter.

Asia including Greater China accounted for 40 per cent of NSN’s sales in Q3 but it won’t be easy to maintain this in the battle for customers with market leaders Ericsson and Huawei.

The Chinese giant last week boasted of an eight per cent global sales rise in 2013, although it didn’t spin out how much came from carrier network business as opposed to its enterprise and consumer business groups. It also claimed to have deployed 110 of the world’s 244 4G LTE networks.

Ericsson, meanwhile, recently trumpeted a major deal with China Mobile to supply TD-LTE to 15 Chinese provinces.

NSN could find itself with the best chance of sealing a few deals in markets where Chinese network infrastructure firms are de facto blocked for security reasons, such as Australia and the US.

In fact, NSN announced a deal back in October 2013 to provide TD-LTE kit for carrier Sprint across the States. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.