What Are The Key Drivers Of Nokia's Revenues?
Key Driver 1: NetworksThis segment sells radio access network and related equipment and accounts for over 75% of Nokia's total revenue.Revenue growth remained sluggish during Q1'19 as growth in IP routing was offset by weakness in the mobile and fixed access space. Things could improve slightly in Q2, driven by 5G deployments. Nokia had 36 commercial 5G wins as of April 2019 and it's likely that this will be the biggest driver of the company's results over 2019.
Key Driver 2: SoftwareNokia's software business accounted for about 11% of revenues in Q1. While software revenues remained almost flat YoY in Q1, it's possible that sales could improve slightly over Q2.
Key Driver 3: Nokia TechnologiesNokia technologies primarily licenses the company's intellectual property. The segment accounted for about 7% of total revenues in Q1. Revenues could improve slightly over Q2.