- Nokia witnesses a drop in its revenues as the company experiences share loss and falling product prices in 2021.
Nokia witnesses a drop in its revenues as the company experiences share loss and falling product prices in 2021.
In a recent statement, Nokia also reported that its sales can be expected to remain between 20.6 billion euros and 21.8 billion euros. Whereas, Bloomberg survey averages predict the sales to be around 21.5 billion euros for 2021.
In addition to this, Nokia also experienced a decrease in its adjusted operating profit in the fourth quarter of 2020. However, an adjusted operating profit of 1.1 billion euros was still better than the average estimate of 955.3 million euros by analysts.
Chief Executive Officer Pekka Lundmark also expects 2021 to be a challenging year for the company due to market share loss and price erosion in North America. The companies net sales fell by 5% to 6.57 billion euros.
While the company struggles with issues of share loss, it was pulled into bouts of speculative trading last week through a Reddit forum, sending its shares up by about 17%. Consequently, the company issued a statement explaining that it was not aware of any developments that could have impacted its stock.
While Lundmark is keen on transforming Nokia to retain its existing market share, the CEO plans on investing more in research and development, and reducing costs by simplifying the company's operations.