Nokia CEO lays out 5G turnaround plan

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Rajeev Suri, Nokia’s erstwhile CEO, had largely justified his โ‚ฌ15.6 billion (US$18.3 billion) takeover of Alcatel-Lucent in 2016 by arguing that customers wanted an “end-to-end” set of products. Pekka Lundmark, his successor since August, has just torn up Suri’s manual. “It is interesting to have ‘end-to-end’ discussions but that is not how customers buy,” he told reporters this morning.

Nokia CEO Pekka Lundmark will do 'whatever it takes' to restore 5G leadership, he says.

The market has been waiting to see what Lundmark would do at the Finnish equipment maker, which has struggled to keep pace with Ericsson, its big non-Chinese rival, in the last couple of years. Today it was provided with a clearer view as a major restructuring and strategic U-turn accompanied the release of troubling third-quarter results. Sales were down 3% year-on-year, to about โ‚ฌ5.3 billion ($6.2 billion), and they fell 7% on a constant-currency basis.

Tumbling 17% in Helsinki, Nokia’s share price was trading at its lowest level in five years this morning, as investors reacted to the news. Lundmark is under immediate pressure to show that his turnaround strategy can restore competitiveness at a firm whose earlier merger activity and decision-making have failed to work out.

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