NSN expects to break even this year
Nokia Siemens Networks (NSN) expects its sales to outgrow the market in 2011, driven by the continued growth in mobile broadband and managed services, and the completion of its Motorola acquisition
Chief Rajeev Suri said overall industry revenues will grow slightly in 2011, and is confident NSN will achieve its target of break even in non-IFRS operating margin this year.
The firm cut its operating loss to €686 million in 2010, on flat sales of €12.6 billion, however Suri notes the firm “returned to revenue growth,” in the back half of the year “up 8% year-on-year despite the challenging market environment,” he told journalists at the Mobile World Congress this morning.
“For us, the component shortage issue has been stabilized in the fourth quarter. But [for the] industry at large, it would take two more quarters before the component shortages would go away.”
Suri said the firm expects to see continued growth in core areas including mobile broadband and managed services during 2011.
Last year, the firm won 25 new 3G customers and has the highest number of W-CDMA customers at 193. In LTE, the company has signed 31 commercial contracts to date – more than any other vendor -, and recorded strong growth in managed services for the third year in a row, with 65 new contracts in 2010.
The completion of the Motorola acquisition will also drive NSN’s growth in North America, Japan and South Korea, Suri said.
However, future success will be heavily reliant on the increasingly complex area of customer experience, he pointed out.
“It isn’t news anymore that the mobile data explosion continues to accelerate, but while our competitors are still focused merely on volume, we have shifted to address complexity,” Suri said, adding. “When we survey our customers, more than 82% list improving customer experience as their highest priority.”