Exiting the smartphone market will look like a smart move for Nokia, only if the network equipment unit performs better than it did last year. There are major headwinds.Both Nokia and Ericsson must compete with China selling equipment upfront for almost nothing. Huawei makes money by charging for services and support later. Upgrades also help recoup losses from the initial sale.2017 marks the mid-point of Nokia’s loss-leading cycle. Management forecasts this transition will slog through in 2017 through to 2018, at the earliest. Only after carriers like AT&T (T), Verizon (VZ), and China Mobile prepare for 5G will hardware sales pick up. Until then, NOK’s stock is fully valued at these levels.Stock market selling will nudge NOK shareholders to close their long position. If Nokia falls to $4.00/share, there is value. By 2018, investments in SDN, 4G LTE, and 5G will benefit Nokia. Until then, NOK will report uninspiring profit margins.Look for Nokia announcing cost cuts and lower CapEx. The lower growth forecast for this year will put a lid of any rebound for Nokia.Related stocks:Juniper (JNPR) faces no headwinds. Cisco's revenues are steady. BlackBerry is staying in the smartphone market. Its partner, TCL, must promote and lever its channels to lift DTEK50 (budget), DTEK60 (mainstream), and DTEK70 device sales.