Can Nokia Revive Its 5G Business With Marvell Partnership?
Zacks Investment Research | Mar 04, 2020 08:11PM ET
Nokia (HE:NOKIA) Corporation (NYSE:NOK) recently announced that it has teamed up with Marvell Technology Group Ltd. (NASDAQ:MRVL) to develop customized 5G radio access system-on-chip (SoC) leveraging its ReefShark technology. The alliance underscores Nokia’s commitment to deliver cost-effective and automated 5G network operations, especially at a time when it is aiming to walk the extra mile to revive its faltering 5G business.
Headquartered in Santa Clara, CA, Marvell Technology is a fabless designer, developer and marketer of analog and digital signal processing integrated circuits. The global semiconductor company specializes in highly integrated SoC and System-in-a-Package devices, based primarily on ARM designs, which are sold to both businesses and consumers. With more than 10,000 patents worldwide, it operates in China, Germany, Bermuda, Taiwan, Japan, Korea, the United Kingdom and the United States.
Talisman Deal?
Per the deal, the semiconductor company will be providing its industry-leading multi-core Radio Access Technology applications that will be incorporated in Nokia’s AirScale RAN product line with its 5G-backed ReefShark portfolio. Equipped with customized ARM-architecture-based processor chips, this breakthrough innovation aims to deliver best-in-class customer experience with reduced power consumption, and enhanced performance and capacity.
Notably, Nokia has long struggled to undertake additional investments related to its 5G powered ReefShark SoCs. These SoCs are best known to leverage a single computer chip to operate an entire system. Unfortunately, its inability to develop ReefShark portfolio has hindered its cost-efficiency feature, compromising its profitability to rivals like Ericsson (NASDAQ:ERIC) , which spends hefty amounts on R&D. Dearth of resources and geared up 5G spending cycle have also put Nokia at the risk of losing out on upcoming commercial launches.
The latest collaboration comes as a savior for the Finnish company to cater new vertical markets especially in the face of burgeoning network traffic and dynamic 5G plans. Dubbed as a key partnership, it is expected to reduce Nokia’s technical disparities and address the complex requirements of 5G NSA, SA, NR standards for future network deployments.
Current Scenario
Shares of Nokia have declined 36.7% compared with Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.