Nokia Corporation (NYSE:NOK) shares are trading lower premarket Friday after the company denied reports of selling its mobile-networks business.
Earlier, citing people familiar with the matter, Bloomberg reported that Nokia's mobile networks assets are drawing preliminary interest from suitors, including Samsung Electronics Co., Ltd. (OTC:SSNLF).
The company disclosed that it has no announcements related to the speculations and that no insider project on the matter exists.
Nokia stated that it is dedicated to the success of its Mobile Networks business, viewing it as a crucial asset for both the company and its customers.
Nokia further added that this year, the business had made notable strides in optimizing costs while maintaining its product roadmap, securing new deals, and expanding its share with existing clients.
Today, in a separate release, Nokia announced that it is expanding its Fixed Networks R&D facility in Chennai, Tamil Nadu, with support from the state government. The new lab will be one of Nokia's largest and will focus on advancing technologies to bridge the digital divide.
Vimalkumar Kothandaraman, Head of Fixed Networks for Asia Pacific at Nokia, said, "This investment highlights our dedication to India and global technology advancements, and allows us to further leverage the abundant talent pool in the region. This MoU solidifies our collaboration with the Tamil Nadu government to jointly drive telecom industry innovations, expanding our world-class R&D hub in Chennai."
In July, Nokia reported second-quarter 2024 net sales of $4.81 billion, missing the analyst consensus estimate of $5.24 billion.
Sales hit a record low, mainly due to weak investment in mobile network upgrades affecting the 5G equipment market.
Investors can gain exposure to the stock via iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:IDGT) and Defiance Connective Technologies ETF (NASDAQ:SIXG).
Price Action: NOK shares are down 2.46% at $4.37 premarket at the last check Friday.
Image: Nokia
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