The massive organizational shake-up at Nokia is paying off, as the tech giant recorded earnings growth in Q3 despite chip supply constraints and issues in North America.
In its earnings statement, CEO Pekka Lundmark credited Nokia’s performance to increased investments in technology, a key pillar of the company’s new strategy, and market demand.
Global supply chain issues and lower network revenue from North America were offset by “strong growth in Network Infrastructure,” he added, but warned that continued uncertainty around the semiconductor market limits “visibility into Q4 and 2022”.
“We are working closely not only with our suppliers to ensure component availability but also with our customers to ensure we can meet their needs and mitigate the unprecedented component cost inflation our industry faces,” Lundmark noted.
Nokia is in the early days of its new operational model, which was introduced alongside an R&D push designed to revive its fortunes and catch-up on 5G.
Lundmark noted in addition to benefiting from its increased research spend its operating margin was up on the “accountability and financial discipline that our new operating model is driving through the organisation”.
Net profit of €351 million was up 78 per cent year-on-year, with revenue 2 per cent higher at €5.4 billion.