Nokia CEO Predicts ‘Small Drop’ in 5G Network Market Share for 2021

Product development in Nokia’s 5G network business is “delivering in a pretty promising manner,” said CEO Pekka Lundmark on a Q4 call. The company plans to increase its R&D investment “to make sure that we repeat the success of 4G also in 5G,” he said. Nokia has 90% success converting 4G network contracts to 5G, excluding China, he said. “We have currently 195 commercial 5G engagements,” including 45 “live 5G networks” and deployments that have progressed to “paid trials,” he said. Lundmark estimated Nokia’s 5G network market share was 27%-28% at the end of 2020 and will fall slightly to 25%-27% by Dec. 31: “Not that dramatic, but still there is a small drop.” For 2020, “we cannot be happy” that sales for the Nokia group declined 4% on a “constant currency” basis, despite a 19% increase in North America, he said. Sales in Europe, its No. 2 market, rose 2% in constant currency, he said. The stock closed 7% lower Thursday at $4.37.