Nokia Corporation (NOK) shares dropped in pre-market trading on Friday after the company denied reports of selling its mobile networks business. Earlier, Bloomberg reported, citing sources, that Nokia’s mobile networks assets were attracting interest from potential buyers, including Samsung Electronics.
Nokia clarified that there are no announcements related to these speculations and no internal project concerning the sale of its mobile networks division. The company emphasized its commitment to the success of its Mobile Networks business, highlighting its crucial role for both Nokia and its customers.
Nokia further stated that the business has made significant progress this year in optimizing costs while maintaining its product roadmap, securing new contracts, and expanding its market share with existing clients.
In a separate announcement, Nokia revealed the expansion of its Fixed Networks R&D facility in Chennai, Tamil Nadu, with support from the state government. This new lab, one of Nokia’s largest, will focus on advancing technologies aimed at bridging the digital divide.
Vimalkumar Kothandaraman, Head of Fixed Networks for Asia Pacific at Nokia, stated, “This investment highlights our dedication to India and global technology advancements, and allows us to further leverage the abundant talent pool in the region. This MoU solidifies our collaboration with the Tamil Nadu government to jointly drive telecom industry innovations, expanding our world-class R&D hub in Chennai.”
In July, Nokia reported second-quarter 2024 net sales of $4.81 billion, falling short of the analyst consensus estimate of $5.24 billion. The sales decline reached a record low, primarily attributed to weak investment in mobile network upgrades, impacting the 5G equipment market.
Investors can gain exposure to Nokia through ETFs such as the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT) and Defiance Connective Technologies ETF (SIXG).
NOK shares were down 2.46% at $4.37 in pre-market trading on Friday.
