Nokia’s Business Restructuring and Shift Towards Network Infrastructure

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Nokia’s latest financial review for the second quarter shows a significant shift in focus towards network infrastructure, led by AI-driven IP and optical sales. The Network Infrastructure unit surpassed Mobile Networks, attributed to a surge in hyperscaler demand.

Key Points:

AI Supercycle: Network Infrastructure excelled in optical and IP sales, outperforming Mobile Networks for the first time since early 2024.
Rising Enterprise Sales: Enterprise sales hit a record high of 16% of revenue with 30 private 5G deals, while telco sales declined below 80%.
New Restructure: New chief Justin Hotard plans internal reorganization to align with AI-era demands and establish a unified vision.

This evolution in Nokia’s networking business mirrors the telecoms market trends, showcasing a strategic move towards embracing the ongoing ‘AI supercycle’.