HELSINKI (AP) — Telecoms gear maker Nokia has reported a surprise first-quarter loss amid tougher competition for the new, superfast wireless 5G networks that are expected to increase in business this year.
The company, based in Espoo, Finland, said Thursday its net loss for the January-March period was 116 million euros ($130 million), against profit of 83 million euros a year earlier. Sales rose 2% to 5 billion euros.
CEO Rajeev Suri said revenues from the faster but more expensive 5G networks were expected to "grow sharply" in the second half of the year.
He said the "slow start to the year" was caused by aggressive competition in the network industry - dominated by Nokia, Sweden's Ericsson and China's Huawei - in the early stages of 5G rollout. That had created "near-term pressure but longer-term opportunity."
Shares in Nokia dropped as much as 10% after the news of the quarterly loss.