Heise: Siemens’ struggling network division is even hard for Nokia to stomach: on Tuesday, the world’s largest cell phone manufacturer lowered its earnings forecast for the next few years. At an investor conference held on Tuesday in Amsterdam, Nokia said its operative margin would probably be around 15 percent. Up to then, 17 percent had been expected.
Nokia said it lowered its forecast due to the greater dependence on the redesigned network division Nokia Siemens Networks, which will have a much lower margin than the cell phone division. A few months ago, the two companies resolved to merge their network divisions. The joint operation will reportedly go into business in January 2007. Nokia CEO Olli-Pekka Kallasvuo expects slight growth in this field of business over the next few years. The operative margin will be around ten percent.