Finland’s Nokia plunged to a surprise quarterly loss after it failed to supply 5G telecoms equipment in time, and said the security dispute surrounding rival Huawei was creating pressure to invest as customers reassess their suppliers.
Shares fell 9 percent to 4.68 euros on the news on Thursday, their lowest level in six months. Nokia said it would be under significant pressure to deliver in the second half after a slow start to the year in supplying next-generation mobile gear.
Nokia counts Sweden’s Ericsson and China’s Huawei as its main rivals, and some analysts say the Finnish company may benefit from challenges faced by Huawei after Washington alleged its equipment could be used by Beijing for spying - charges Huawei denies.
Ericsson last week posted January-March quarter profit that beat forecasts, spurring the Swedish firm to lift its outlook for the global telecom networks market.
But Nokia said on Thursday: “Some customers are reassessing their vendors in light of security concerns, creating near-term pressure to invest in order to secure long-term benefits.”