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Wireless and fixed web instrumentality shaper Nokia connected Thursday reported third-quarter nett supra expert expectations connected expanding income of 5G exertion and trimmed costs, but the institution warned that the planetary shortage of semiconductors made the marketplace outlook foggy and could hamper growth.
The Espoo, Finland-based institution reported net profit of 463 cardinal euros ($537 million) for the July-September play successful examination to 305 cardinal euros a twelvemonth earlier. Sales were up 2% astatine 5.4 cardinal euros.
CEO Pekka Lundmark said the third-quarter results showed the institution "delivered different large quarter" driven by its accrued investments successful 5G technology.
He noted that the uncertainty astir semiconductors constricted the outlook for the fourth quarter and into 2022. The shortage of semiconductors has led to a shortage of chips for the products of Nokia and its competitors.
"We could've grown faster (in the 3rd quarter) had determination been capable components available," Lundmark said successful a league telephone with reporters, adding that Nokia was moving intimately with its suppliers and customers to lick the semiconductor availability problem.
The enforcement has vowed to marque Nokia the satellite person successful 5G - the caller procreation of broadband exertion - adjacent if it means sacrificing short-term profitability. In 5G technology, Nokia is successful a choky contention with Nordic rival Ericsson, China's Huawei and South Korea's Samsung, among others.
Despite a booming marketplace for 5G products, Lundmark earlier this twelvemonth acknowledged that Nokia faced problems successful definite markets similar the United States, wherever the institution has mislaid marketplace share. Its penetration of the China marketplace besides remained debased contempt Nokia securing an important 5G woody with cardinal relation China Mobile this year
Lundmark said Thursday that the "headwinds" successful the U.S marketplace were offset successful the 3rd 4th by a beardown maturation successful Nokia's fixed networks business, which helium said has benefited from the COVID-19 pandemic done booming income of fixed broadband connections built astatine backstage homes. Sales for Nokia's fixed networks portion grew 30%, to 588 cardinal euros, quarter-on quarter.
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