Nokia(US:NOK) Sou Hu Cai Jing·2025-08-29 07:03Group 1 - Nokia's comparable net profit declined by 28% year-on-year in Q2, amounting to €236 million (approximately ¥1.963 billion), despite a 2% revenue increase to €4.47 billion, which translates to a 1% decline when adjusted for constant currency [2] - The company's comparable operating profit margin fell to 6.6%, down 2.9 percentage points from the same period last year, indicating significant profitability challenges [2] - The mobile networks division is facing severe difficulties, with major U.S. carriers like Verizon switching to Samsung and AT&T opting for Ericsson, leaving T-Mobile as its primary customer [2] Group 2 - In 2020, Nokia's mobile networks division generated €10.4 billion (approximately ¥86.514 billion) in revenue, accounting for nearly half of the company's total revenue, but this dropped to €7.7 billion (approximately ¥64.054 billion) in 2024, representing only 40% of total revenue [2] - The profitability of the mobile networks division has deteriorated significantly, with a profit margin of 9.5% in the first half of 2022 turning into a loss of €75 million (approximately ¥624 million) in the same period this year, resulting in a profit margin of -2.2% [2] - Nokia is focusing on AI development, with CEO Justin Hotard emphasizing the upcoming "AI supercycle" that is expected to drive stronger network demand, although this may pressure short-term profits [3] Group 3 - Shareholders are growing increasingly impatient, with some criticizing Nokia for overemphasizing "comparable profits" to mask weak official data, while others are calling for significant restructuring, including divesting more profitable business units and potentially relocating the headquarters to the U.S. to attract more institutional investors [3]