Nokia today said it is expecting to achieve sales revenue of EUR 20.6 billion to EUR 21.8 billion during 2021 and grow faster than market in 2023.
Finland-based Nokia is aiming to achieve an operating margin of 7-10 percent in 2021 and 10-13 percent in 2023.
Recently, Nokia announced that it will slash around 10,000 jobs as part of strategy to cut cost and enhance investment in research and development.
“We have a detailed plan for how we will reset the business, accelerate competitiveness and scale up our lead in the markets we choose to play in. This plan will enable us to deliver double-digit comparable operating margins in 2023,” Pekka Lundmark, president and CEO of Nokia said at the company’s Capital Markets Day 2021.
“5G is in its early phase. We estimate that the peak of the 5G market will last roughly twice as long as it did with 4G,” Pekka Lundmark said.
From 2022 onwards the company will accelerate competitiveness and aims to grow margins through enhanced technology leadership, digitalization of own operations, automation and capturing emerging opportunities. It then plans to scale up to drive growth in new use cases and business models including in enterprise and private wireless in order to grow faster than the market.
Market development 2020 to 2023
Nokia’s total estimated addressable market is expected to grow at a compounded annual growth rate (CAGR) of approximately 1 percent from 2020 to 2023, comprising of the following estimates:
Mobile Networks estimated 2020 – 2023 addressable market CAGR, excluding China, of approximately 1 percent;
Network Infrastructure estimated 2020 – 2023 global addressable market CAGR of approximately 2 percent;
Cloud and Network Services estimated 2020 – 2023 global addressable market CAGR of 2 percent.