Nokia, a wireless and fixed-network equipment manufacturer, has released its first-quarter financial results, showing a smaller-than-expected profit and a significant double-digit decline in sales. This drop in sales is attributed to a market that has been weakened by clients who are not investing in 5G technology.
Despite this, Nokia’s CEO Pekka Lundmark expressed confidence in achieving the company’s full-year outlook, citing continued improvement in order intake. The company based in Espoo, Finland reported a net profit of 501 million euros for the January-March period, an increase of 46% from the previous year but below analysts’ expectations. One-off gains from Nokia’s licensing business contributed to the profit, while net income attributable to shareholders stood at 497 million euros, up from 332 million euros a year earlier. Sales were down 20% at 4.7 billion euros.
As one of the leading suppliers of 5G technology globally, alongside Ericsson, Huawei, and Samsung, Nokia faces challenges in regions like North America and India where spending on 5G technology has been low. However, Lundmark expressed optimism regarding the outlook for Network Infrastructure, projecting a return to net sales growth in the second half of 2024. Despite this challenge
