Nokia reports Q1 loss; foresees 5G opportunities as Huawei is under threat
It appears that Nokia is having a rocky 2019 start as results from the Q1 2019 show a significant loss in contrast to last year's Q1. The company posted a surprising €254 million loss in Q1 2019 compared to the €46 million profit in Q1 2018. That's a result of Nokia's investments in 5G, which are yet to start paying off. Sweden's Ericsson and China's Huawei are considered to be Nokia's main 5G rivals and since the Chinese firm is under fire on all fronts over security concerns, it could be a big opportunity for Nokia. It's under significant pressure to deliver in the second half of this year.
Many customers are now looking for other 5G equipment suppliers with Huawei out of the picture, so Nokia needs to seize the moment. However, the Finnish tech company has to invest a significant amount of money and reap the benefits in the long term. So in reality, the whole Huawei situation puts a lot of stress on Nokia in the short term, but should be beneficial in the months to come. Also, Nokia outlines the failure to secure a €200 million deal of net sales related to 5G equipment in North America to be one of the culprits for the quarterly loss.