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Nokia unveils new strategy

Rajeev Suri in Espoo, Finland, on Tuesday. (AP/PTI)

London, April 29: Finnish technology company Nokia announced a new strategy on Tuesday that focuses on its core mobile telecommunications infrastructure business, and it named the head of that division, Rajeev Suri, as its new chief executive.

The plan opens the first period in more than 30 years in which the company, once the global leader in smartphones, will not have a presence in the phone market; it completed the sale of its beleaguered handset business to Microsoft on Friday for $7.5 billion.

Under the new strategy, Nokia will continue to invest in its two other business units, which focus on digital maps and on developing the company’s research and intellectual property teams. As part of the strategic review after the handset sale, Nokia said it would carry out dividend payments, share buybacks and debt reductions totalling more than 5 billion euros, or $6.9 billion.

“I feel excited about the challenge,” Suri, 46, who will become the CEO on Thursday, said in an interview. “The vision for the company is inspiring and the future is bright.”

The company said its net income during the first quarter, excluding the handset division, was $108 million, compared with a loss of $98 million in the same period last year. Nokia’s revenues fell 15 per cent to $2.7 billion, primarily because of reduced sales and asset divestments from the company’s telecom infrastructure unit.

 
 
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