Nokia said it has revised its revenue target to EUR 21.7-22.7 billion for 2021 as compared with the earlier target of EUR 20.6-21.8 billion.
The increase in revenue target is despite a drop in market share and price erosion in telecom market in North America.
Nokia reported sales of EUR 5.313 billion, registering 4 percent growth, with 41 percent gross margin in the second quarter of 2021.
Nokia India reported EUR 290 million revenues during Q2 2021. Nokia India achieved 62 percent increase in sales revenue.
Asia Pacific 582 million euros (9)%
Europe 1,662 million euros 6%
Greater China 374 million euros 11%
India 290 million euros 62%
Latin America 323 million euros 50%
Middle East & Africa 423 million euros (1)%
North America 1,659 million euros (4)%
Nokia CEO Pekka Lundmark said: “We are revising upwards our full year outlook. We expect 10-12 percent operating margin for full year 2021, compared to our previous range of 7-10 percent.”
Nokia said it executed faster than planned on strategy in the first half providing a strong foundation for the full year. “We still however expect to face the earlier communicated headwinds in the second half, particularly with market share loss and price erosion in North America,” Pekka Lundmark said.
Nokia sales increased 4 percent in the second quarter of 2021, primarily driven by Network Infrastructure and Nokia Technologies, partially offset by Mobile Networks and Cloud and Network Services.
Sales to Enterprise customers decreased 5 percent, primarily due to a difficult year-ago comparison. Nokia has gained 63 new Enterprise customers and its pipeline remains strong. Nokia has more than 340 customers in private wireless business.
The addressable market for Mobile Networks, excluding China, will grow by approximately 6 percent against 3 percent previously. The change was primarily driven by increased expectations for the CSP 4G and 5G radio access market across regions, particularly in Europe, India, Middle East and Africa and North America.