Tanjiro.Kamado
Active member
Nokia reported a 32% drop in second-quarter operating profit, citing weak demand for 5G telecom equipment, with profits falling to 423 million euros from 619 million euros a year earlier. Both Nokia and Ericsson have been affected by reduced telecom equipment purchases, leading to thousands of layoffs. Nokia's net sales dropped 18% year-on-year due to slower 5G investment in India. Despite missing sales and earnings forecasts, CEO Pekka Lundmark expects sales to significantly accelerate in the second half of 2024, driven by an improving U.S. fiber market and a $42 billion U.S. government program to enhance high-speed broadband access. Additionally, Nokia could benefit in Europe as Germany plans to exclude Chinese vendors like Huawei from its 5G network by 2029. The company maintained its full-year guidance for comparable operating profit, although analysts believe the outlook will remain pressured until year-end. 
