Introduction
Founded in 1865 and headquartered in Espoo, Nokia is a Finnish tech leader in telecommunications, AI-networking solutions, and digital infrastructure. Under CEO Justin Hotard and with ~78,000 global employees, the company generated more than $21 billion in trailing revenue. Despite recent headwinds from tariffs and currency fluctuations, Nokia continues investing in AI, network infrastructure, and global connectivity growth.
History & Milestone
Originated as a milling company in 1865, transitioning into telecommunications. Headquarters moved to Espoo .
Acquired Infinera in June 2024 for $2.3 billion to boost optical networking capabilities .
Accelerated its carbon neutrality timeline by 10 years, targeting net zero by 2040 .
Product & Services
Network Infrastructure: Mobile networks (5G), IP, optical, submarine, and cloud/core networking.
Enterprise Solutions: Private wireless, AI-driven automation, digital services.
Technology Licensing: Nokia Technologies division’s royalty revenues.
R&D Innovations: Bell Labs, including space/military contracts and autonomic networks .
Business Model & Strategy
Nokia’s model centers on high-value telecom equipment, licensing, and digital services. The company is leveraging acquisitions (e.g. Infinera), AI capabilities, and a pivot toward defense, data centers, and hyperscale clients. CEO Hotard is exploring U.S. manufacturing to mitigate tariff effects .
Market Presence & Financials
Nokia serves global markets across carriers, enterprises, and cloud-service sectors. Q2 2025 revenue reached €4.55 billion (+2% YoY), though operating profit declined ~29% to €301 million . The company’s robust asset and cash position supports continued investment.
Leadership & Culture
Sari Baldauf is Chairwoman .
CEO Justin Hotard brings experience from Intel’s AI/Data Center group, signaling Nokia’s strategic tech-forward transition .
The firm emphasizes engineering excellence, R&D (Bell Labs), global collaboration, and ethical, sustainable operations.
Controversies & Challenges
Profit decline: Net income declined sharply in H1 2025 due to adverse forex and tariffs .
Downgraded guidance: Operating profit outlook trimmed to €1.6–€2.1 billion (from €1.9–€2.4 billion) amid headwinds .
Tariff and currency impact: CEO highlighted significant effects and the need for localized production strategies .
Future Outlook
Nokia expects a stronger second half in 2025, driven by rising demand for infrastructure and cloud services. Under Hotard’s leadership, the company will invest in AI, defense/enterprise verticals, and address tariff risks through manufacturing adjustments .