Locations and Commerce In 2007 Nokia acquired NAVTEQ for $8.1Billion and created their Location and Commerce segment. This has made them one of the global leaders in mapping and location based technologies, especially with built in GPS systems in cars. In fact, Nokia currently manufactures navigation systems inside 4 out of every 5 cars equipped with in-dash navigation. This dominant enterprise market position seems likely to strengthen, as according to the earnings conference call, BMW, Mercedes, Pioneer, Volkswagen, Hyundai, Garmin, Groupon Microsoft and Yahoo have all announced plans to start using Nokia Location solutions or added on additional location services. In addition to the commerce solutions, Nokia is using their 25 years of experience in mapping and extensive infrastructure to differentiate their smart phones through superior location services. Nokia also recently launched a Mapping app on iOS in response to consumer dissatisfaction with the new Apple Mapping. Nokia Siemens Network The third forgotten operating segment for NOK is Nokia Siemens Network, or NSN. This segment has been in the news recently as NOK has been restructuring aggressively. Earlier this week, Nokia Siemens Network announced the sale of its Fiber Optics unit to Marlin Equity Partners. This move will transfer 1,900 employees to Marlin Equity Partners and provide NSN with much needed cash as they continue divesting their non-core assets. So far, the restructuring, which began in 2011, has gone well. Nokia Siemens Network posted a record quarter this past quarter, as net sales increased year over year and quarter over quarter to $3.5B Euros. NSN’s corporate strategy goes beyond simple cost cutting. NSN intends to refocus on product quality, innovation, and key countries such as Korea, Japan and the US. NSN believes that continued successful execution of this strategy will allow Nokia to strengthen its position as an industry leader in LTE and innovate further in mobile connectivity. Interested in learning more? Click here for an overview of Nokia’s key ratios, or here to see their balance sheet!
By David EmamiThis article is part 2 of 4. Next, part 3: Emerging Markets