|Nokia reports 9% decline in sales in Q3, headwinds continue into 2018|
Nokia shares were down 19% at one point today after the equipment vendor reported a 9% year-on-year net sales decrease in the third quarter, and conditions will continue to be difficult into 2018.
President and CEO Rajeev Suri blamed challenges related to market conditions—like the transition from 4G to 5G—and certain projects particularly in North America and greater China.
“Despite the progress we made in the quarter, we experienced some challenges in our Mobile Networks business and see a continued decline in our primary addressable market in 2018,” he said in a statement. “That decline, which we estimate to be in the range of 2% to 5%, is the result of the multiple technology transitions underway; robust competition in China; and near-term headwinds from potential operator consolidation in a handful of countries.”
Nokia is expanding into cable, but it will take time to offset the declines in its traditional business with communication service providers, he said. Nokia won its first cable customer in WideOpenWest in the United States for products related to its acquisition of Gainspeed, and it’s in trials with almost a dozen customers, including some of the industry's largest players.