Finnish telecom network equipment maker Nokia reported better-than-expected fourth-quarter revenue and underlying profits on Thursday, buoyed by new Chief Executive Officer Pekka Lundmark’s strategy revamp.
While both Nokia and its Nordic rival Ericsson have been gaining 5G customers as China’s Huawei is increasingly shunned out by several governments over security concerns, Ericsson seems to have benefited more. Nokia said a growth in its 5G equipment sales was partially offset by decreases in its legacy radio access products.
Revenue at its mainstay networks business fell 7% to 5.04 billion euros ($6.05 billion). Apart from staying away from the fast- growing China 5G market, losing part of the Verizon 5G contract in the United States to Samsung Electronics has also hit Nokia’s growth.
“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.