Nokia Shows Mild Growth Despite Chip Market Barriers

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Although supply chain problems have hampered most industries, it has had a particularly suffocating effect on manufacturers like Nokia. Announcing its third quarter results yesterday, Nokia President and CEO Pekka Lundmark still called its two percent net sales growth a “great quarter driven by our increased investments in technology leadership and strong market demand.”

Lundmark said the highlight of the quarter was the launch of its next generation FP5 IP routing silicon, which he says delivers up to three times more capacity while reducing power consumption by up to 75 percent per bit compared to previous generation.

This will help reduce the carbon footprint of both Nokia and our customers,” Lundmark said, “while also helping customers to manage their operating expenses. The third quarter saw us achieve sales growth despite the impact of earlier communicated headwinds in North America for Mobile Networks and global supply chain constraints. These headwinds were offset by strong growth in Network Infrastructure against a tough year-on-year comparison and by Cloud and Network Services achieving double-digit growth.”

Operating margin for the quarter was 11.7 percent, with the company claiming over 380 private commercial wireless companies as customers. Net sales growth was driven by double-digit growth in both Cloud and Network Services and Nokia Technologies.

From a regional perspective, North America, Asia Pacific and Latin America witnessed strong growth, which was partly offset by declines in Europe, Middle East and Africa, Greater China and India. Net sales in North America increased nine percent. In the quarter, Lundmark said the company faced headwinds related to Network Infrastructure Enterprise products, but continued to see strong momentum in private wireless, with strong growth in its Mobile Networks.

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