Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Nokia - statistics & facts
Nokia once dominated the mobile handset landscape, producing a design icon with the near indestructible Nokia 3310, as well as popularizing mobile gaming with the ever-addictive Snake. Tracing its roots to the 19th century, the Finnish firm played a key role in the development of the Global System for Mobile Communications (GSM) in the late 1980s and early 1990s, and was the world’s leading mobile phone vendor as recently as 2010. However, its failure to adapt to the rapidly evolving smartphone market in the following years saw it eclipsed by rival manufacturers Apple and Samsung. The company has since pivoted, focusing its efforts on network infrastructure and equipment as it seeks to become a leading global facilitator of digital transformation.
Nokia reorganizes its network business
Nokia’s exit from the mobile handset industry came amid intense competition in the smartphone market. While Apple and Samsung were finding success with iPhone and Galaxy devices, poor sales for Nokia’s Windows based Lumia series in 2011 and 2012 saw the firm’s net sales tumble, with the company eventually selling its smartphone business to Microsoft in 2013. Nokia’s ensuing business transformation saw its Networks segment take center stage, with a reorganization in 2021 forming three new network centered divisions: Mobile Networks, Network Infrastructure, and Cloud and Network Services. The Mobile Networks segment accounted for the largest share of net sales in 2024, driven by the provision of radio access network (RAN) and 5G products and services.Nokia loses a key U.S. contract to Ericsson
Nokia’s focus on next-generation networks has brought it into competition with a range of multinational players, most notably the Swedish firm Ericsson, with which it competes for major network infrastructure contracts. While Shenzhen-based Huawei occupies the greatest share of the global market, it has seen its ability to do business in western markets drastically reduced by sanctions on Chinese firms, intensifying competition between the Nordic firms in North America and Europe. In 2023, the U.S. mobile network operator AT&T chose Ericsson to deploy its open radio access network (Open RAN) despite a long working relationship with Nokia, underlining the volatile nature of the infrastructure business.The firm’s evolution continues
While Nokia’s transition away from consumer hardware has secured its survival, the company considers its transformation far from complete. Moving forwards, Nokia has identified several strategic imperatives, including the expansion of the company’s communications service provider business, and the exploration of new business models. In addition, the company has stated its desire to compete on the quality of its ESG credentials, identifying the role that such metrics will play in securing key clients in the years to come.
