Nokia reported lower-than-expected earnings and sales in the first quarter of the year. The telecom equipment manufacturer blamed this on a weak market that was caused by clients failing to invest in 5G technology. Despite an increase in net income, sales were down by 20% at 4.7 billion euros.
The telecom equipment market is facing challenges as operators cut back on investments in new technology like 5G due to economic uncertainty and high financing costs. Nokia’s CEO, Pekka Lundmark, acknowledged the ongoing weakness in the market but expressed confidence in a stronger second half and achieving the company’s full-year outlook.
Despite challenges faced by its mobile network unit due to low spending in 5G technology in North America and India, Nokia is hopeful for growth in its Network Infrastructure business unit for the full year. The company is a key player in the 5G industry, alongside competitors like Ericsson, Huawei, and Samsung.
