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3 Ways Nokia Can Still Make Money

Chris Neiger
September 4, 2013

The Nokia (NYSE: NOK) we know today will be a drastically different company once its sale to Microsoft (NASDAQ: MSFT) goes through next year (pending regulatory approval). Its handset devices will be gone, but the Finnish company will still have three key areas it can profit from.

Finding a solution
In an investor presentation earlier this week, Nokia laid out one of the most important ways it will continue to produce revenue: network solutions. The Nokia Solutions and Networks segment -- or NSN -- already made up about 45% of the Finnish company's sales, with $3.6 billion in revenue in the second quarter of this year.

NSN makes data and telecommunications equipment and is a "world specialist in mobile broadband" and No. 2 in LTE, according to Nokia. The Wall Street Journal reported recently that NSN made up 90% of Nokia's revenue in 2012, if you exclude the mobile phone division. Earlier this summer, the company purchased back the 50% stake Siemens AG had in NSN, so Nokia will enjoy all of the revenue going forward.

Mapping the here and now
Albeit a smaller part of Nokia's overall business portfolio -- about 4% right now -- the company's HERE mapping service and platform is used in four out of five cars with in-dash navigation.

Part of Microsoft's purchase of Nokia's devices is that the company will also license Nokia's maps for four years. Nokia said in a presentation that Microsoft will become one of the top three HERE customers and that, "This revenue stream will substantially replace the revenue stream HERE is currently receiving from Nokia's Devices & Services business internally."

That's good news for Nokia and its investors, considering that revenue from HERE was $307 million in the second quarter of this year. Just a week ago the company launched a new version