Nokia, a leading manufacturer of wireless and fixed-network equipment, reported disappointing results in the first quarter of the year. Despite an increase in net profit to 501 million euros from 342 million euros in the previous year, sales were down by 20% to 4.7 billion euros. The decline was attributed to a weakened market caused by clients’ reluctance to invest in new technology like 5G.
Despite the challenges, Nokia’s CEO, Pekka Lundmark, expressed optimism about the company’s prospects for the second half of the year and achieving its full-year outlook. As a key player in the 5G industry, alongside competitors like Ericsson, Huawei, and Samsung, Nokia is hopeful for growth in its Network Infrastructure business unit for the full year. However, its mobile network unit may face challenges due to low spending on 5G technology in North America and India.
The ongoing weakness in the telecom equipment market has been caused by economic uncertainty and high financing costs that have led operators to cut back on investments in new technology like 5G. Despite this challenge, Nokia remains confident about its ability to innovate and develop solutions that meet customers’ needs while driving growth in its business units.
