Nokia, a telecommunications equipment manufacturer based in Finland, has reported a decline in both profit and sales in the second quarter. The company’s net profit for April-June was 328 million euros, a 20% drop from the same period last year. Similarly to its Swedish counterpart Ericsson, Nokia has been affected by reduced investments in 5G technology by clients, influenced by economic concerns and high financing expenses.
Nokia’s net sales decreased by 18% year-on-year in constant currency, reaching 4.5 billion euros compared to 5.4 billion euros in the previous year. As a significant player in the 5G market, along with Ericsson, Huawei, and Samsung, Nokia is optimistic about an improvement in sales performance in the latter half of the year, particularly in the network infrastructure division.
Nokia’s CEO, Pekka Lundmark, acknowledged the persisting challenges in the mobile network unit, which remains the company’s primary business segment in terms of sales. Operators are still cautious about investing in 5G technology and related equipment, contributing to the ongoing market difficulties. Despite the current market conditions, Lundmark expressed confidence in the industry stabilizing and foresees a notable increase in net sales growth in the second half of the year.