Nokia has emerged as the leader in India’s telecommunications market, surpassing its competitor, Ericsson, in terms of revenue performance during the second quarter of 2023.
The Finnish telecom giant reported impressive sales of €1,043 million from India during this period, demonstrating strong growth and market dominance in the region. Huawei and ZTE lost considerable business in India.
The significant growth in net sales in India for Nokia was primarily attributed to its Mobile Networks division, which saw a remarkable boost in revenue as 5G deployments continued to gain momentum in Q2 2023. The company also experienced robust growth in its Network Infrastructure segment, driven mainly by its Optical Networks division.
On the other hand, Ericsson reported revenue of 9.02 billion SEK (approximately €784.67 million) from India in the same quarter. While Ericsson’s India revenue has shown growth compared to the previous year, it still lags behind Nokia’s impressive sales figures.
Nokia’s Mobile Networks business has been a key driver of its success in India, benefiting from the ongoing 5G deployments in the country. This growth in the Mobile Networks division offset any weaknesses experienced by Nokia in the North American market. As a result, Nokia achieved a noteworthy 5 percent net sales growth during the second quarter of 2023.
Additionally, Nokia’s Optical Networks segment played a crucial role in the company’s strong performance, recording an impressive 16 percent growth on a constant currency basis. The growth in this segment was primarily fueled by the demand for Nokia’s PSE-V solutions in India.
Notably, in Q2 2023, Nokia’s Mobile Networks net sales globally grew by 1 percent on a reported basis. The continuation of 5G deployments in India and market share expansion in the region were the primary drivers of this growth.
Meanwhile, Ericsson highlighted India as its second-largest market, with India’s revenue contributing 14 percent of the total revenue for the company in Q2 2023, a significant increase from the 3 percent contribution in the same quarter of the previous year. However, despite these gains, Ericsson faced challenges in other markets, particularly in North America, where the build-out pace moderated, leading to a decline in network sales by 13 percent.
Overall, Nokia’s remarkable performance in India during Q2 2023 showcases its strong position in the country’s telecommunications market, driven by the success of its Mobile Networks and Optical Networks divisions. With 5G deployments and market share gains in India, Nokia’s growth trajectory remains promising as it continues to solidify its position as a leader in the global telecommunications industry.