Current:Home > MarketsNokia sales and profit drop as economic challenges lead to cutback on 5G investment-InfoLens
Nokia sales and profit drop as economic challenges lead to cutback on 5G investment
View Date:2024-12-23 11:18:55
HELSINKI (AP) — Nokia on Thursday reported a double-digit decline in sales and a fall in profit in the last three months of 2023, with the wireless and fixed-network equipment maker saying operators are cutting back on investments into 5G and other technology because of economic uncertainty.
The Espoo, Finland-based company reported net profit of 568 million euros ($619 million) for the October-to-December quarter, down from 929 million euros in the same period a year earlier.
Nokia is one of the world’s main suppliers of 5G, the latest generation of broadband technology, along with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung.
Nokia’s net income attributable to shareholders came in at 558 million euros in the fourth quarter, down from 931 million euros the previous year. Nokia’s sales also fell 23%, to 5.7 billion euros from 7.5 billion euros.
“In 2023 we saw a meaningful shift in customer behavior impacting our industry driven by the macro-economic environment and high interest rates,” CEO Pekka Lundmark said in a statement.
He also pointed to the effect of Nokia’s clients such as telecom operators that have already bought new equipment and don’t intend to get more.
“Looking ahead, we expect the challenging environment of 2023 to continue during the first half of 2024, particularly in the first quarter,” he said. “However, we are now starting to see some green shoots on the horizon” including improved order intake for Nokia’s network infrastructure unit.
In October, Nokia announced plans to cut up to 14,000 jobs to reduce costs. It said the measure was needed to enable Nokia to navigate in a weak market environment where low economic growth and high interest rates have put investments by clients on hold.
Other tech companies, such as online retailer eBay on Wednesday, are laying off workers and have pointed to the challenging economy, which has slowed following rapid interest rate hikes unleashed by central banks around the world to combat soaring inflation.
veryGood! (3)
Related
- Kennesaw State football coach Brian Bohannon steps down after 10 seasons amid first year in FBS
- New Mexico secretary of state says she’s experiencing harassment after the election
- Sister Wives’ Meri Brown Shares Hysterical Farmers Only Dating Profile Video After Kody Split
- GM recalling big pickups and SUVs because the rear wheels can lock up, increasing risk of a crash
- Amazon Prime Video to stream Diamond Sports' regional networks
- Rachael Ray Details Getting Bashed Over Decision to Not Have Kids
- Cameron Brink set to make Sports Illustrated Swimsuit debut
- Pennsylvania House Republicans pick new floor leader after failing to regain majority
- Traveling to Las Vegas? Here Are the Best Black Friday Hotel Deals
- Ariana Grande's Brunette Hair Transformation Is a Callback to Her Roots
Ranking
- ‘I got my life back.’ Veterans with PTSD making progress thanks to service dog program
- Oprah Winfrey Addresses Claim She Was Paid $1 Million by Kamala Harris' Campaign
- Voyager 2 is the only craft to visit Uranus. Its findings may have misled us for 40 years.
- Republican Gabe Evans ousts Democratic US Rep. Yadira Caraveo in Colorado
- Georgia public universities and colleges see enrollment rise by 6%
- Garth Brooks wants to move his sexual assault case to federal court. How that could help the singer.
- Gossip Girl Actress Chanel Banks Reported Missing After Vanishing in California
- Republican Vos reelected as Wisconsin Assembly speaker despite losing seats, fights with Trump
Recommendation
-
Ready-to-eat meat, poultry recalled over listeria risk: See list of affected products
-
What happens to Donald Trump’s criminal conviction? Here are a few ways it could go
-
Contained, extinguished and mopping up: Here’s what some common wildfire terms mean
-
Some women are stockpiling Plan B and abortion pills. Here's what experts have to say.
-
Arkansas governor unveils $102 million plan to update state employee pay plan
-
Olivia Munn began randomly drug testing John Mulaney during her first pregnancy
-
Ben Foster Files for Divorce From Laura Prepon After 6 Years of Marriage
-
Texas mother sentenced to 50 years for leaving kids in dire conditions as son’s body decomposed