How will Nokia navigate 5G competition from Huawei and Ericsson?

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Nokia's Strategy for Navigating 5G Competition

Nokia is focusing on making progress in its Mobile Access challenges and leveraging its existing market share while managing supply chain risks to navigate the competitive 5G landscape. The company has secured a significant number of 5G orders, positioning itself within the market excluding China.
Progress in Mobile Access and Market Position

Despite facing fierce competition from rivals Huawei and Ericsson, Nokia's CEO Rajeev Suri has stated that the company is making progress in addressing its challenges within Mobile Access. Nokia announced that it has secured 66 5G orders, which translates to a 27 percent share of markets outside of China across both 4G and 5G. Suri anticipates this market share figure to remain stable throughout 2020. For context, Ericsson had reported 79 5G contracts by mid-January, and Huawei had secured 65 orders by December.
Supply Chain Management Amidst Disruptions

Nokia has acknowledged the potential for temporary disruptions, particularly within its supply chain, due to the coronavirus outbreak. Some of its suppliers' factories in China have been temporarily closed. However, the company has indicated that it possesses alternative sources for supply. Chief Financial Officer Kristian Pullola stated that Nokia is utilising its global supply chain to ensure it can meet its customer commitments.
Financial Performance and Outlook

In 2019, Nokia achieved its first full-year net profit since 2015, reporting €7 million. This was bolstered by a strong fourth quarter, where the company posted a net profit of €563 million. While the company maintained its 2020 forecasts, it noted that it would not expect net cash holdings to reach €2 billion in the first three quarters of the year. Analysts suggest that Nokia should be in a significantly improved position for profitable business and cash flow in 2021.

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How will Nokia navigate 5G competition from Huawei and Ericsson?

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