On February 10, Nokia made headlines with a significant announcement regarding its leadership transitionPekka Lundmark, the current President and CEO of the company, informed the board of directors that he would be stepping down from his positionThe board has appointed Justin Hotard as the next President and CEO, set to officially take over on April 1, 2025. Prior to this appointment, Hotard held the title of Executive Vice President and General Manager of the Data Center and AI business unit at Intel, having been appointed to that role in January 2024.

This leadership change comes at a critical time for Nokia, as the company strives to enhance its technological capabilities, particularly in the rapidly evolving 5G sectorThe need for transformation became apparent as early as March 2020 when Nokia entered into a strategic partnership with Intel in hopes of accelerating the development of its Reefshark chip system, which was lagging behind expected timelinesPekka Lundmark took charge in August 2020 with a mandate to lead this transformation, successfully steering the company towards higher-value software and services, while emphasizing operational efficiency.

Educated with a master's degree in science from Helsinki University of Technology, Lundmark previously served as the President and CEO of Fortum, an energy companyDuring his tenure at Nokia, he played a pivotal role in solidifying the company’s leadership in 5G technology, as well as bolstering its presence in emerging markets such as cybersecurity and the Internet of Things (IoT). In a June 2022 interview, he projected that a new generation of high-speed communication, referred to as "6G," could very well become practical by 2030.

The company recently released its fourth quarter and full-year financial results for 2024 on February 3. The data, while indicating a robust fourth quarter with a year-on-year revenue increase of 10% to €6.67 billion, shows a different picture for the year overall, with net sales dropping 9% to €19.22 billion compared to €21.14 billion in 2023. Nokia cited the underperformance of the Indian market as a key factor in this decline

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Despite this, the network infrastructure and technology sectors reportedly continued to drive growth, with Nokia securing over €1.3 billion in revenues through multiple licensing agreements with companies such as Transsion, HP, and Samsung last yearLooking ahead, Nokia anticipates that its comparable operating profit for 2025 will range between €1.9 billion and €2.4 billion.

Interestingly, one of the highlights of Nokia's recent strategy involved reviving its classic phone model, the Nokia 3210. The nostalgia-driven move led to the device selling out shortly after its launch in the Chinese marketThe re-release, which occurred on an otherwise ordinary Friday, saw the classic model vanish from shelves within hoursCome June 17, 2024, just in time for the mid-year shopping spree on "6.18," Nokia managed to produce enough of the 3210 4G model to meet demand, and it too sold out quickly online.

This is not the first time Nokia has revisited its nostalgic rootsThe 3310 reboot in 2017 captivated a younger audience, especially those under 30, and within two years, sales exceeded ten million unitsThe launch of the Nokia 105 series further exemplified the brand's ability to resonate with consumers, emerging as a top-seller; by 2022, the global sales of this series reportedly surpassed 200 million units according to the company’s official Weibo account.

However, the modern iteration of Nokia is no longer solely dependent on mobile phone sales for its survivalIn 2012, the company appointed Risto Siilasmaa as chairman, who embarked on a journey of redefining Nokia’s identity as a supplier and service provider of network infrastructureThis strategic pivot allowed Nokia to innovate through a balanced approach of acquisitions and divestitures.

In July 2013, Nokia made a pivotal move by acquiring the remaining 50% stake in Nokia Siemens Networks (NSN) for €1.7 billion, subsequently making NSN a wholly owned subsidiaryShortly after, they sold a significant portion of their mobile business and certain patents to Microsoft for €5.4 billion and the HERE mapping service to a German automotive consortium for €2.55 billion.

This dual approach of acquiring and divesting not only replenished Nokia’s cash reserves but also enabled the company to enhance its footprint in the network infrastructure domain

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