Nokia is back and taking a massive punt on the future of connected devices. This was the message from CEO Rajiv Suri on Friday at the telecoms company's first capital market day in five years, but it did little to offset a 4.5 percent plunge in the Finnish telecoms company's shares.
On Friday, the slimmed-down firm upped its 2015 expected operating margin for its networks business to between 8 to 11 percent. The upgrade was widely expected, after Nokia reported operating margin of 11.4 percent in the first nine months of this year, driven by a major project in China as well as high demand for 4G. This led shares to tumble to close 5.5 percent down on the day, as the margin upgrade was already baked into the share price.
The capital day came after Nokia sold its cash-burning "Devices and services" business to Microsoft earlier this year for 5.44 billion euros ($6.78 billion). The company is a different beast to the company that once dominated the mobile handset space and bolstered the Finnish economy—until it fell behind in the rapidly moving smartphone market that Apple and Samsung now control.