Nokia downgrades profit forecasts amid 5G competition warning

Nokia has warned that its full-year profits this year and next will be lower than previously thought because of acute competition and costs related to new-generation 5G networks.

The warning from the technology giant came as it reported a 14% decline in third-quarter net profits of €267 million, against €309 million a year earlier.

However, sales were up 4%, at €5.7 billion.

Nokia chief executive Rajeev Suri said today that risks previously flagged up regarding the initial phase of 5G are "now materialising".

Other factors weighing on the business, he said, are "profitability challenges" in China and business development uncertainties in North America.

The company, which is based in Espoo, Finland, said it now has 48 commercial 5G deals and 15 live networks.