Nokia joins Ericsson in forecasting stronger second half after profit miss

Falling demand for 5G and market share losses have forced telecom firms to temper expectations and lay off thousands of employees

The Finnish group posted a first-quarter operating profit, excluding certain items of income and expenses, and helped by cost cuts, of €597m

Telecom gear maker Nokia reported on Thursday a smaller-than-expected rise in quarterly profit as sales tumbled because operators bought less 5G technology, but said it expected a sales pick-up this year.

A fall in demand for 5G equipment in North America, the largest market for Nokia and rival Ericsson and market share losses in China have forced both to temper expectations and lay off thousands of employees to shed costs.