Finland's Nokia cut its annual outlook, while Swedish rival Ericsson reported plunging quarterly profits, as a slowdown in consumer spending hit sales of telecommunications gear. Fears of a recession have forced businesses to cut their budgets
"The companies thought that demand would pick up in the second half of the year, particularly in North America, but it now looks increasingly clear that it will be pushed to 2024," Kimmo Stenvall, analyst at OP Markets, told Reuters.
Nokia said it now expects 2023 sales of 23.2-24.6 billion euros , lowering a previous forecast of 24.6-26.2 billion euros. The decline was driven by a slowdown in spending among operator clients, particularly in North America, though the company said this was partially offset by growth in India. Net sales rose 3% to 64.4 billion crowns and topped the 63.9 billion expected by analysts, Refinitiv Eikon data showed.
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