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Nokia sets out major job cuts but steps up 5G push

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Finnish telecoms giant Nokia says a big cost-cutting program unveiled today will save it €700m ($799m) by the end of 2020 and result in substantial job cuts.

Alongside the cost reductions, Nokia is stepping up efforts in 5G mobile radio products and creating a new Enterprise business unit to bring together fast-growing activities under current chief strategy officer Kathrin Buvac.

“Our early progress in 5G is extremely strong, we continue to increase our investment in this critical technology, and our win rate for new deals suggests that we are in a very good competitive position,” Rajeev Suri, president and CEO, said in a statement.

Reporting a 27 percent drop in profits in its latest quarterly period ending September 30, from €668m a year ago to €487m in line with expectations, Nokia said cost savings will come from areas including significantly reduced central support functions, cross-company activities, R&D in legacy products, and real estate.

According to Nokia, these planned changes are expected to result in a net reduction of employees globally.

“Even if these actions are right for our business, we do not take them lightly given the expected impact on our employees,” Suri said.

SEE: IT pro’s guide to the evolution and impact of 5G technology (free PDF)

The company has already been cutting costs resulting from its 2016 €15.6bn merger with French networking giant Alcatel-Lucent. Cost reductions from that deal are due to amount to €1.2bn and be completed this year.

“With the successful Alcatel-Lucent integration and cost-saving program soon to be behind us, we are taking steps to accelerate the execution of our strategy and sharpen our customer focus,” Suri said.

Nokia’s third-quarter net sales came in at €5.5bn ($6.27bn), slightly above expectations.

More than half of Nokia’s profits still come from its patent holdings, a legacy of the company’s mobile-phone past. In that context, Nokia also today announced that its patent license deal with Samsung is being extended.

Nokia has just reported its Q3 and January-September 2018 and non-IFRS results.


Image: Nokia

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Nokia reports €613m loss after Alcatel-Lucent acquisition

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Finnish and French networking giants Nokia and Alcatel-Lucent will merge under a deal worth €15.6 billion to form Nokia Corporation.

Alcatel-Lucent CEO to gain €14m from Nokia merger

With the pending merger of Alcatel-Lucent and Nokia, the CEO of the French company has come under fire by local governing bodies after it was revealed he is set to pocket €14 million when the deal is finalised.

Nokia targets 5G future with new chipsets that boast 3x capacity TechRepublic

Nokia’s new chips incorporate AI to reduce the size and power use of MIMO antennas and will be available in Q3 2018.

5G smartphones are coming. Here’s a (probable) list of them CNET

The 5G revolution is nearly upon us. Here’s when to expect super fast 5G phones from heavy-hitting phone makers.

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BMW iX5 Hydrogen Production Starts, But Don’t Expect To See This Fuel-Cell SUV In Dealerships

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The reality, though, is that even with a small number of BMW iX5 Hydrogen SUVs being produced — using individual fuel-cells supplied by Toyota, but assembled into a stack by BMW using the automaker’s own processes and technologies — the expectation is that hydrogen as a fuel will be predominantly of interest to non-passenger vehicles. Instead, it arguably makes the most sense, BMW suggests, for larger vehicles like medium- to heavy-duty trucks, along with the marine and aviation sectors. We’ve already seen Toyota reveal its plans for such an FCEV truck.

Despite that, and an acknowledgment that battery-electric vehicles will undoubtedly lead in the mainstream, BMW still believes there’s a place for FCEVs. After all, the automaker argues, if the infrastructure is being built to cater for trucks, there’s no reason not to also use it for passenger vehicles like the iX5 Hydrogen.

The results of the small-series production beginning today will be used as technology demonstrators across select regions from spring 2023, BMW says. It’s unclear at this point how many will be built. Depending on the reception and the strengths of the technology, series production of a first model could follow mid-decade, ahead of a potential full portfolio of BMW FCEVs from the 2030s onwards.

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Tesla Set To Deliver The First Semi To Pepsi

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In October, Tesla’s CEO revealed that the production of the Tesla Semi had begun, and it was bound to be delivered today. Tesla has already started the countdown, and we expect the unveiling event to go down at the Nevada factory. The electric truck will be dispatched to Pepsi, which had ordered 100 units. Investor reports that Tesla’s stock price increased by 7.7% on Wednesday, probably in anticipation of Tesla’s Semi first delivery.

Musk tweeted on Saturday that the “Tesla team just completed a 500-mile drive with a Tesla Semi weighing in at 81,000 lbs!” However, considering that Musk said that the company is dealing with supply chain issues and market inflation, it’s unclear if Tesla will stick to the original $180,000 price it intended to sell at when it was announced in 2017. Then again, Tesla offers a cheaper Semi that will be available for about $150,000 — but it can only achieve up to 300 miles at full load capacity. For now, we can only wait until it’s on the road to confirm if the specs match up to what was promised five years ago.  

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Coinbase Joins Elon Musk In Slamming The Apple App Store Tax

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Coinbase complained that Apple’s insistence on its cut unreasonably interfered with its business.

Coinbase’s argument was largely the same as Elon Musk’s, and the basis of Epic Games’ aforementioned lawsuit. According to all of the above, Apple was half of a duopoly: with Google, it controlled the global app marketplace. The “duopoly” part of the argument is pretty much incontrovertible: As of October 2022, both Apple and Google control 99.43% of the global smartphone market between them (via StatCounter). Both get a 30% cut of everyone’s action on its marketplace. From the perspective of Coinbase, that took too much money out of too many elements of its business.

Epic sued over that and, as noted above, won with an asterisk. Apple had restricted in-app purchases, and courts found that anticompetitive, but did require that Apple get a 30% cut of the profits, even though they took place in someone else’s app. In short, according to the Verge, the court said that if you’ve found a way to make money using iOS, you owe Apple 30%, period.

Epic thought in-app purchases should be exempted from the tax. Coinbase thinks elements of the NFT development process — in this case, gas prices to run the processing equipment necessary to mint NFTs — should be exempt from Apple’s app tax. Apple treats all user expenses on an app as in-app purchases and, per the Epic court decision, in-app purchases mean Apple gets a cut.

It’s not a simple problem, and it’s not likely to be solved anytime soon. Stakeholders and regulators have barely begun to integrate cryptocurrency and NFTs into the conventional marketplace. Who gets paid for what is likely to be a conversation for years on end. For now, all that’s certain is that conversation has begun.

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