Nokia Corp. said. that it expects to deliver double-digit operating margins in 2023 as it outlined a three-tier strategy ahead of their capital markets day on Thursday.
The telecom equipment manufacturer said it expects currency growth to grow in 2023 faster than the market, with a relative operating margin of 10% -13%.
In 2021, Nokia still sees adjusted sales of between 20.6 billion euros and 21.8 billion euros ($ 24.6 million- $ 26 million) and a relative operating margin of 7% -10%.
The company has raised three levels that it hopes will deliver above ongoing market growth. The first phase involves a continuous relocation, focusing on technology leadership, implementing its new operating model and resetting its cost base.
From 2022 onwards, Nokia said it will accelerate competitiveness and aims to grow margins through improved technology leadership, digitization and the seizure of emerging opportunities.
They then plan upwards to drive growth in new use cases to outperform the market.
Between 2020 and 2023, Nokia said it expects their overall projected market growth at a tight annual growth rate of around 1%.
“5G is still at an early stage,” said CEO Pekka Lundmark.
“We estimate that the peak of the 5G market will last about twice as long as it did with 4G.”
Nokia also updated its allowance policy, focusing on normal, stable and over-the-counter recycling payments, taking into account the previous year’s earnings as well as the company’s financial position and business outlook.
Write to Dominic Chopping at [email protected]