We also need to remember that when you look at the three large carriers in the U.S., their CapEx announcements that they have made, it’s not that different from what they said two, three years ago. They increased investments in 2022. There may be a slight change in the plans for 2023 as they have now announced, but the big picture is still very much the same as it was. And we have to remember that the need for new capacity will continue also in North America. So after the dip, there will be a need for new investments again. So that’s why we are not expecting anything dramatic to happen in that market. But as we have said, in Mobile Networks, there will be a regional mix shift where, in relative terms, North America will be slightly lower and India will be the fast growth market.
And that is then also going to be reflected in margins though so that we expect to be able to compensate that mix change with scale benefits, with normalizing supply chain and very importantly, technology development that is driving down the cost of the product.
David Mulholland: Thank you, Simon. And just a reminder, if you could please stick to one question, please. We’ll take our next question from Sami Sarkamies from Danske Bank. Sami, please go ahead.
Sami Sarkamies: Hi. Thanks for the presentation. I want to dig deeper into your Enterprise aspirations. You mentioned a double-digit share as an interim target, but what could be the level in the long run? Are you planning to make acquisitions in order to strengthen your offering in this area, and can you please provide guidance on how long growth investments will go to margins? And what could be the level in the long run relative to CSP margins? Thanks.
Pekka Lundmark: Well, the margin question, Enterprise versus CSPs, we are not opening up at this stage. We are reporting the numbers in our businesses because Enterprise is not a full P&L as such. It is a customer segment, which has its own sales teams, but it’s not a full P&L. In terms of the ambition level, it is very clear, we want to continue double-digit growth. The market looks promising in terms of being able to support that. We have now increased to 8%, then we want to go to double-digit. And once we are there, then it’s the time to discuss the next steps. But of course, we want that to continue. We do not want it to stop at 10%. So after 10% comes 15% and then comes 20%, but how long that will take, I’m not going to speculate on right now.
In terms of priorities, the number one priority is organic development. Then if that is not enough, then bolt-on type of acquisitions would be the second priority. That’s really what we are focusing on in terms of this business.
David Mulholland: Thank you, Sami. We’ll take our next question from Daniel Djurberg from Handelsbanken. Daniel, please go ahead.
Daniel Djurberg: Thank you very much, Pekka and Marco, and thanks for the business deep dive. A question on gross profit. It was down 1% in Mobile Networks in Q4, still up 13% year-over-year for the full-year. And obviously, we see large changes in the mix in 2023. And you do expect some 5% growth at constant currency for the Mobile Networks side. But my question is really with regards to €“ what do you see as triggers for gross profit for Mobile Networks in 2023? And also if you can comment on 2024, 2025 time frame, when we see even lower growth for the Radio Access Network market, should we pencil in a decline in gross profit? Or can you work with other issues, so you can get the gross margin and gross profit growing again? Thanks.
