- Even with the Trump administration's aggressive push to limit Huawei's 5G contracts around the world, it still managed to beat the competition so far this year.
- Nokia lost market share this year, despite the geopolitical advantage.
- An incoming Biden administration, as well as EU political signals would suggest a EU-US common front against China, which would in theory benefit Nokia.
- While a coordinated EU-US position on China is likely to occur, the overall effect will be a much milder position, given that the EU in particular is not economically prepared for confrontation with China.
- Given that about half of Nokia's revenue comes from its Mobile Access sector, it is crucial for the company to get more 5G contracts. Otherwise, its profitability, and its dividend sustainability may be at risk.
For further details see:
Nokia's Geopolitical Advantage Over Huawei Will Not Continue During Biden's Presidency