Nokia Shifts To Selling Back-End Systems To Mobile Networks

jfruh writes: With Nokia's handset business now sold off to Microsoft, you might be wondering what the remainder of the company does, exactly. The company is trying to use its expertise at other end of its old business, offering data centers and virtualized infrastructure to wireless networking companies to make their businesses more efficient. Competitors include Ericsson, another mobile phone also-ran.

Comments

Also-ran?

[stoborrobots]

Ericsson was a key provider of telecomunication equipment long before it was a mobile handset manufacturer - in the same way as Alcatel, Lucent and Nokia long provided back-end hardware. For all of them, handset production was a short-term dalliance in the late 90s and early 2000s, not the entire history of the company...

Re:Also-ran?

[TheRaven64]

Nokia has also been in the market of selling the infrastructure for mobile networks for a long time. And, unlike the handsets, this is a very profitable place to be. Both Nokia and Ericsson saw the commoditisation of the handset market and Nokia in particular watched their margins evaporate and decided it was time to get out. But because they're now no longer in the public eye, they're perceived as losing. Now their customers are people who make money from the products that they sell, so are willing to pay a reasonable premium because a few minutes of downtime costs far more.

Of course, when Apple decides to concentrate on the high-margin part of a business, no one claims that they're dying, because they concentrate on a consumer-visible part of the market.