Espoo, Aktualita.co — A Shift Away from Mobile Phones
For decades, the title of Nokia was emblematic of mobile telephony. Yet, the trajectory of the Finnish technology titan has transformed dramatically.
The once-prevalent Nokia-branded devices no longer command the marketplace as they did during the millennium’s early years.
Presently, Nokia Corporation primarily focuses its endeavors on telecommunications network infrastructures, data center solutions, technology licensing, and the burgeoning field of artificial intelligence (AI).
This strategic pivot has become increasingly apparent throughout 2026. Nokia has fortified alliances with several pivotal technology giants, such as Microsoft and NVIDIA, to construct progressively automated networks that are poised for the impending 6G era.
On September 17, 2026, Nokia in collaboration with Microsoft announced the inception of an AI-powered unified data foundation aimed at aiding telecommunications operators in automating network management.
The partnership amalgamates the Nokia Data Suite with Microsoft Fabric. While the Nokia Data Suite delivers data-centric products tailored for the telecommunications sector, Microsoft Fabric integrates storage, data management, analytics, and AI-driven services.
The objective is to expedite access to previously fragmented network data through AI applications. Nokia asserts that this innovative approach can diminish the data provisioning timeline—once extended over weeks—to mere minutes.
“Collaboratively, we are transforming networks from static infrastructures into dynamic, AI-native platforms,” remarked Vivek Jaiswal, Senior Vice President of Autonomous Networks at Nokia.
Practically, AI’s role extends beyond mere data interpretation. The technology is being refined to detect disruptions, determine potential problem origins, provide actionable insights, and autonomously execute numerous workflows under human oversight.
AI’s Embarkation into Telecommunications Network Operations
One specific application of this technology pertains to the management of Voice over New Radio (VoNR) services within 5G networks. AI agents are employed to recognize service irregularities and assist operators in their analysis.
Another innovative development from Nokia concerns geo-experience capabilities. This system integrates customer data, network metrics, and radio frequency information to pinpoint areas suffering from diminished service quality or inadequate capacity.
Nokia is also advancing predictive maintenance initiatives. By leveraging historical data alongside real-time network conditions, the firm anticipates potential disruptions prior to their escalation.
Such advancements are indicative of AI’s evolutionary journey from consumer applications like chatbots to the essential infrastructure underpinning internet and telecommunications services.
Nokia and NVIDIA Propel AI-RAN Towards 6G
Just a day prior to its announcement with Microsoft, Nokia unveiled its advancements in AI-RAN technology in conjunction with NVIDIA.
AI-RAN represents an innovative integration of artificial intelligence within the Radio Access Network— the segment of the telecommunications framework that links user devices to the operator’s core network.
Nokia has reported that various operators across multiple regions have undertaken proof-of-concept and field trials of the AI-RAN technology utilizing the NVIDIA Aerial RAN Computer.
These trials have been conducted in North America, Europe, Asia-Pacific, and the Middle East.
Nokia claims that its developed AI-RAN platform demonstrated a remarkable 20 percent enhancement in spectral efficiency during testing. Additional software advancements are slated for 2027 and 2028.
Maximizing spectrum efficiency is pivotal for operators, as frequency remains a finite resource. The more proficiently a network utilizes its spectrum, the greater its data-handling capacity becomes without the continual need for additional frequencies.
AI-RAN is perceived as a critical milestone en route to the advent of increasingly AI-integrated networks in the forthcoming 6G epoch.
Indonesia Joins Nokia’s AI Ecosystem
Nokia’s foray into the AI domain also extends to Indonesia.
On August 6, 2026, Indosat Ooredoo Hutchison, in tandem with Ooredoo Group, Nokia, and NVIDIA, unveiled Zankore by Indosat—an AI infrastructure initiative aimed at meeting AI computing needs throughout the Asia-Pacific region.
This project aspires to achieve a capacity of up to 1 gigawatt for the NVIDIA DSX AI Factory. The infrastructure under development is anticipated to support extensive AI computing, encompassing enterprise applications and the cultivation of agentic AI.
Nokia’s participation is a testament to its evolution beyond merely being a provider of radio network equipment.
Competition within the telecommunications landscape has broadened its scope to encompass data center networks, automation, cloud solutions, AI, and high-capacity computing infrastructure.
Understanding Nokia’s Ongoing Profitability Despite Diminished Phone Sales
A pertinent inquiry often arises regarding Nokia’s sustenance in an era when its mobile devices have waned in popularity.
The elucidation lies within Nokia’s adaptive business paradigm.
Currently, Nokia Corporation does not depend on the sale of smartphones to sustain its operations. Nokia-branded devices have been marketed in recent years through HMD Global under a licensing arrangement.
In contrast, the bulk of Nokia Corporation’s revenue now stems from its telecommunications network business, intellectual property and optical infrastructures, mobile technologies, and a robust patent licensing portfolio.
The most recent fiscal reports elucidate the magnitude of this shift.
In the second quarter of 2026, Nokia reported net sales of 4.815 billion euros, reflecting an 8 percent increase relative to the previous year.
Network Infrastructure sales reached approximately 2.04 billion euros, whereas Mobile Infrastructure contributed around 2.68 billion euros.
Remarkably, sales to the AI and cloud sector customers witnessed a staggering 105 percent surge year-on-year within that quarter. The burgeoning demand for data center construction and AI infrastructures has emerged as a significant growth driver for the firm.
On a comparable basis, accounting for specific exceptional items, Nokia achieved a comparable operating profit of 434 million euros in the second quarter of 2026, signaling an 18 percent increase from 367 million euros in the analogous timeframe the previous year.
For the initial six months of 2026, the comparable operating profit reached 735 million euros, reflecting a 28 percent year-on-year growth.
However, these comparable figures diverge from the profits reported in financial statements. In the second quarter of 2026, Nokia recorded a modest profit of 5 million euros, impacted by restructuring expenses, while the cumulative profit for January to June 2026 was 92 million euros.
For the entirety of 2026, Nokia anticipates a comparable operating profit range of 2.1 billion to 2.6 billion euros. This forecast underscores that the scale of Nokia’s business is no longer contingent upon consumer purchases of Nokia phones.
Even in 2025, the company reported an annual net profit of 660 million euros, albeit a decline from 1.284 billion euros in 2024.
Nokia: More Than Just a Phone Manufacturer
This metamorphosis elucidates the distinction between contemporary Nokia and the brand once renowned for the iconic Nokia 3310, N-series, and Lumia devices.
Nokia has evolved into a connectivity infrastructure entity encompassing mobile networks, fixed networks, IP networks, optical networks, core networks, and technology for data centers.
The company also maintains a comprehensive portfolio of telecommunications patents that it licenses to other firms.
Nokia asserts that it has expended approximately 160 billion euros on research and development since the year 2000, encompassing tens of thousands of patent families.
This evolution signifies that the diminishment of Nokia phone sales does not equate to the dissolution of Nokia’s business.
What has notably transformed is its primary market focus—from consumers acquiring handsets to telecommunications operators, technology enterprises, cloud service providers, and infrastructures dedicated to AI data centers.
The developments throughout 2026 elucidate this directional shift. Through its collaboration with Microsoft, Nokia is integrating AI into operational management within networks.
Partnering with NVIDIA, the company is advancing AI-RAN towards the 6G paradigm. Concurrently, initiatives like Zankore in Indonesia are navigating Nokia deeper into the realm of AI computing infrastructure development.
The epoch when Nokia flourished via mobile device sales is undeniably over. Nevertheless, the organization bearing the same name persists in successfully operating a multi-billion euro enterprise; its core offerings now largely function behind the scenes of the networks utilized daily by millions.
Source link: Aktualita.co.
