The Finnish telecommunications networks provider Nokia on Thursday reported a smaller than expected drop in profit in the fourth-quarter while it acknowledged it was facing some challenges in the race for 5G networks, particularly in the North American market.
The company based in Espoo, Finland, saw net profit for the October-December period drop 1 per cent to 811 million euros (USD 973 million). Sales were down 5 per cent to 6.6 billion euros.
CEO Pekka Lundmark, who took over the role in August, described the fourth quarter result as solid but warned that the current year wouldn’t be easy for Nokia.
We expect 2021 to be challenging, a year of transition, with meaningful headwinds due to market share loss and price erosion in North America, Lundmark said.
Under Lundmark’s lead Nokia has revamped its business strategy. He has said that Nokia aims to become the leader in 5G – the new generation of broadband technology – in a tight global race with main competitors China’s Huawei and Sweden’s Ericsson.
Nokia reported Thursday it has so far secured 195 commercial 5G deals with 45 operators.
The company said its board wouldn’t propose a dividend for 2020 as Nokia was strongly focused on investing in 5G networks and other “strategic areas.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)