Reinvented Tech Giants: How Companies Like Nokia Are Adapting to Survive
Nokia and Ericsson, once the world's biggest mobile phone makers, have reinvented themselves to survive in the tech industry. They now focus on telecom and networking infrastructure, positioning themselves as suppliers to the artificial intelligence (AI) data centre boom.
BlackBerry, another tech giant, has transformed from a smartphone maker into an embedded software company, with its shares gaining more than 100% over the past year.
Nokia's transition was dramatic. The Finnish company dominated global mobile phone sales in the 2000s but struggled with the shift to smartphones. In 2014, it sold substantially all its handset business to Microsoft and now makes most of its money selling telecom and networking infrastructure.
The AI boom has given Nokia an entry into this new market. Its networking equipment connects servers, data centres and large clusters of AI chips. In the first quarter of 2026, Nokia said sales to AI and cloud customers jumped 49% from a year earlier, while its Optical Networks business grew 20%.