Nokia reports fall in revenues for Q1 2020
Despite the fall in revenues, the company’s CEO says that Nokia remains well positioned to deal with the unprecedented levels of disruption caused by the Covid 19 pandemic
Finnish telecoms equipment vendor, Nokia, has posted a 2 per cent drop in first quarter revenues, missing analysts’ predictions for the quarter in the process.
Revenues for January to March 2020 stood at €4.9 billion, missing analysts’ projections by around €200 million.
Despite its Chinese rival Huawei facing strong headwinds in Europe, Nokia has failed to make much headway in its 5G customer portfolio, with rival Ericsson picking up most of the slack left by Huawei. Nokia also failed to secure any 5G contracts at all in China, with all three operators opting to use Huawei, ZTE and Ericsson. This will be reflected in Nokia’s Q2 earnings.
Nokia is also battling against the unprecedented disruption caused by the Covid 19 pandemic.
However, the company’s CEO, Rajeev Suri, remained upbeat about the company’s prospects during the pandemic.
“We are adjusting the mid-points within our previously disclosed Outlook ranges for full-year 2020 to reflect the increased risks and uncertainty presented by the ongoing COVID-19 situation. We expect the majority of this COVID-19 impact to be in Q2 and believe that our industry is fairly resilient to the crisis, although not immune,” he said.
“We did not see a decline in demand in the first quarter. As the COVID-19 situation develops, however, an increase in supply and delivery challenges in a number of countries is possible and some customers may reassess their spending plans. Pleasingly, despite the majority of our R&D employees working from home, we have not seen any impact on our roadmaps, and, in fact, some key software releases are proceeding ahead of schedule. Additionally, we saw a massive increase in network capacity demands,” he added.