Nokia shares plunge on 5G outlook in US and China

By: Richard Milne

Nokia’s shares lost almost a quarter of their value after the Finnish telecoms equipment maker stopped its dividend and cut its earnings forecasts for this year and next, blaming fierce competition and increased costs in the rollout of 5G networks.

Nokia said that competition from the likes of China’s Huawei and Sweden’s Ericsson had increased in the early stages of the new generation of mobile networks, leading to pressure on pricing at the same time as its costs were high.

The rollout of 5G telecoms networks has turned into a business and geopolitical battle between China and the west.

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