Nokia posts quarterly loss as Huawei saga generates pressure
A delay in 5G payments generated a quarterly loss for Finnish telecom-maker Nokia, which also said, according to a Reuters report, that “the security dispute surrounding rival Huawei was creating near-term pressure to invest“.
The slow start to 2019 and expected weak overall first half puts significant pressure on execution in the second half […] Some customers are reassessing their vendors in light of security concerns, creating near-term pressure to invest in order to secure long-term benefits – Nokia
As Huawei is still facing difficulties worldwide with getting its 5G network equipment approved, companies like Nokia and Samsung are trying to benefit from the void left by the Chinese smartphone-maker. According to Nokia, Huawei and Ericsson are the main competitors for the 5G telecoms market. Still, despite the general status quo surrounding Huawei, Nokia’s networks business generated a loss of more than $280 million in the quarter. The report mentions that the company’s own investments in 5G are yet to generate profits.