Hans Vestberg said that the new structure is necessary to help the company's profitability.
"I think that we are of course in a big transformation, the whole industry is in a transformation. We have invested in some new areas…now we put a structure so we can accelerate strategic execution on it so we also can improve our profitability and enhance our possibility to grow. So that's a long-term plan and now we're putting that new structure in place," Vestberg told CNBC in a TV interview on Thursday.
Ericsson's earnings were hit by a weak environment in Europe and some emerging markets. The company is also facing heightened competition from Nokia after the Finnish firm merged with Alcatel-Lucent earlier this year. Sales in Ericsson's core networks business fell 2 percent year-on-year in the first quarter of 2016.
"On the network side we have gone from 15 competitors and now we are down to three…so of course, here we have seen a dramatic transformation in ten years. I don't think any industry has gone from 15 competitors down to three in such a short period," Vestberg said.
P/E is the mystery that only the market seems to understand or dictate. Why does Apple trade at P/E of 11 or why does Office Depot trade at a P/E of 600? If only investing was as simple as the math. Good numbers but that doesn't tell the whole story when it comes to share price.
Data usage is growing rapidly, once telephone carriers start spending on 5G, Nokia, Ericsson, and Huawei are going to make a fortune. And the market will know before us when the planning behind the scene begins. My guess is the Olympics may be a spring board for 5G.
Great lower expectations for Nokia for a change. Nokia's revenue has been slowly going down for the past 4 years, but Nokia's gross margins and net profit have been risen yoy and that's what really matters. Soon we will know from earnings report and forward guidance if gross margins will continue to rise. Place your bets, hold them, fold them, buy them or short them. I'm holding. You?
That's for sure. Amazing how many people complain about paying dividend taxes. In fact here in my state of NY I pay much less for dividend taxes than I do my earned income taxes from my business. I'll take special dividends every year if possible.
Check out "ESPN Aimed 360-Degree Cameras on This Top NFL Prospect"
ESPN is experimenting with OZO, looks like very good potential for Nokia.
Hi Fr3nchmodel, it's always nice to see you in good spirits. Such a pleasure to see you and several other good folks still here. You are one of the several here that realize money is far from the most important things in life. God be with you.
By the way, I thought you might like to know, being the sports buff that you are that Nokia's OZO camera is working with ESPN and athletes like "North Dakota State quarterback Carson Wentz gets interactive with VR experience." That means in the near future watching sports from home is gong to fell like you are a field ticket holder. Enjoy your summer with the two boys and Ralphie. Hope your mom is well here n NY.
Good question. Look like Nokia has already figured that potential problem out.
"In support of those claims, the vendor this week launched its AirScale Radio Access solution, which Suri said will meet 5G standards – once they are fully defined – via a software upgrade. The solution is said to support various radio technologies, including 2G, 3G, TDD-LTE, FDD-LTE, LTE-Advanced and LTE-Advanced Pro, running simultaneously in the base station as a single radio access networking and integrating carrier-grade Wi-Fi access."
Hi Fr3nchy, just making my rounds through the threads since earnings. I read earnings report early am and I was glad to hear what Nokia had to say. Now that I see Mr. Coffee here I'm getting in the mode for pistachios. Looks like you had some tough nuts to deal with on this board through earnings release. As always Fr3nchmodel you are surely the rock that never waivers. Hope your kids and Ralphie are well.
CLSA has downgraded Nokia on Monday and then they increased their estimates on Nokia's Q4 2015 earnings per share from $.13 to $.15. I noticed another firm that also just downgraded Nokia on Monday had also raised their earning expectation too for Q4 2105. What's up with that? Anybody have any guesses?
They don't like the court ruling but the sure do know how to count the new found profit. Hypocrites I call them and possible worse if they are trying to make expectations impossible to meet. But my guess is that they are right to increase their earnings expectation because Nokia will be booking Samsung's catch up payments into this coming earnings release, the question is how much extra will it impact Q4 2015?
With Sammy's new money, I'm over it already. The biggest issue is Windows just doesn't cut it. I might wait for the new S7 line but I'm anxious to switch.
Too bad for me that I don't have the extensive selection that you have. But soon I will be purchasing a new Samsung phone loaded with all the goods. Soon I will say goodbye to my beloved 929 and give thanks to our new found cash from Samsung.
Correct, sometimes you catch the fish 🐟 with the hook all the way in it's rear end, and sometimes the fish takes your bait and swims 🏊 away.
Just my opinion. Many investor were waiting to sell on Samsung deal, of course they were expecting an up day but sell mentality was the same. Maybe this is better for Nokia going foward, lose the short investor and switch them for the longer term investor. Monday they're was $53.12 million flowed into the stock on the tick up and $26.59 million flowed out of the stock on the tick down. Nokia had the 18th highest net in-flow for the day. Info provided by Ticker Report.
Amen. Thank you Almighty God because without you I'm nothing and because of your mercy and blessings I have so much. Almighty God deserves all my credit for everything in my life and because of God's love and blessings my life has been so beautiful. Thank you Almighty God for you deserve all the credit and I get to enjoy all the benefits. Thank you God for another day. If God is with you who dare be against you.
That's a thought, but remember Samsung's lawyers are crooked and Nokia is not. Remember it was Samsung lawyers that opened undisclosed sealed court documents pertaining to Nokia-Apple settlement. That should have been a red flag to Nokia to just litigate. Samsung wanted to pay Nokia same amount as Apple is paying and Samsung disclosed all that information illegally and clamed they accidently read info. I guess in this case crime paid off. I'm wondering if somehow Samsung paid someone off. Just can't rule anything out with Samsung, they are hurting right now and very desperate.
Good work, thanks. Analyst were making it sound like Ericsson gets over a billion run-rate just from Apple alone. Yes there is a chance that Nokia squeezes out a little bit more from Samsung but not much more I don't think. I think LG outcome and Apples increase should put Nokia's run-rate close to 1 billion. But going forward Nokia needs to litigate and not arbitrate. According to Nokia's financials they still paid big dollars for lawyers during Samsung's arbitration.
This award covers part of the Nokia Technologies patent portfolio until the end of 2018. Nokia will continue to discuss with Samsung its other relevant intellectual property portfolios. Nokia has strong intellectual property assets consisting of intellectual property rights in the separate Nokia Technologies, Nokia Networks and Alcatel-Lucent portfolios, which include patents essential for a variety of standardized technologies as well as relevant implementation patents and proprietary technologies.
Including this award, Nokia expects Nokia Technologies to report net sales of approximately EUR 400 million in the fourth quarter 2015 and approximately EUR 1 020 million for the full year 2015. These numbers include catch up revenue because the award exceeded revenue estimates already recognized with respect to the period from January1, 2014 through September30, 2015. Consistent with Nokias outlook, Nokia Technologies net sales for the full year 2015 are expected to increase year on year, even after excluding amounts related to the award. Following the award, as of the end of the fourth quarter 2015, the annualized net sales run rate for Nokia Technologies was approximately EUR 800 million.
Nokia expects to receive at least approximately EUR 1.3 billion of cash during years 2016 2018 related to its settled and ongoing arbitrations in Nokia Technologies, including this award. Nokia has also earlier received some related prepayments.
The use of independent arbitration to resolve differences in patent cases is a recognized best practice, and we welcome the additional compensation payable to Nokia under the extended agreement, said Ramzi Haidamus, President of Nokia