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The famous telecommunications companyβs investment into 5G still remains uncertain, as its current CEO is to be replaced by Pekka Lundmark in September.
It was once hard to believe that Nokia could ever be in a position of financial struggle. Only twenty years ago, nearly every handheld mobile phone was a Nokia.
Nowadays theyβre a nostalgic meme for us twenty-somethings who enjoy remembering just how indestructible those early devices were. You could chuck them in the microwave and theyβd probably still work – though Iβm not recommending you do that.
In the decades since its heyday, however, Nokia has struggled to keep itself in the race for top telecommunications provider. The rise of Apple, Samsung, and Huawei has seen its market dominance dwindle, so much so that the company is now rumoured to be considering selling or merging parts of itself to keep things afloat.
Now, in another surprising turn, Nokiaβs CEO Rajeev Suri has announced he will be stepping down come this September, having worked for the company for 25 years. Heβll be replaced by Pekka Lundmark, who worked for Nokia in various roles throughout the nineties and is currently the CEO of Finnish energy company Fortum.
In a statement, Rajeev Suri said that he βlooked forward to working with [Pekka] on a smooth transitionβ and thanked the company βfor making him a better leaderβ.
The switch up is a little surprising but could be a positive move in the long term. Nokiaβs future looks particularly uncertain at the moment given the imminent rise in 5G services across the globe and, as Techspot reported yesterday, itβs already lagging behind both Ericsson and Huawei in terms of commercial 5G contracts.
Weβll have to see if this changeup of staff gives Nokia a much needed boost. The company has lost a third of its share value since this time last year and has had to scale back its profit outlook for 2020. 5G could be its saving grace – and Pekka Lundmark will have to lead the way.
