Nokia today revealed that its revenue dropped 11 percent to 5.1 billion euro in Q2 2020 as its sales in China fell 41 percent.
Sales were impacted by Covid-19 and unique dynamics in China, Nokia said announcing its financial results.
Nokia generated 3.955 billion euro (–10 percent) from Networks, 597 million euro (–12 percent) from Software and 341 million euro (–11 percent) from Technologies.
Networks sales decreased 10 percent primarily due to mobile network business on account of dip in network deployment services and legacy radio technologies. The 8 percent decrease in IP Routing was primarily due to a particularly strong Q2 2019, which benefitted from pent-up demand for some of its newly introduced FP4 products.
The 11 percent decrease in Optical Networks business was primarily due to temporary supply chain constraints as a result of Covid-19. The 2 percent drop in fixed network business was primarily due to Greater China, partially offset by growth in fiber access technologies.
Nokia’s second quarter sales touched 877 million euro (–13 percent) in Asia-Pacific, 1.585 billion euro (–2 percent) in Europe, 302 million euro (–41 percent) in Greater China, 212 million euro (–41 percent) in Latin America, 400 million euro (–9 percent) in Middle East & Africa and 1.717 billion euro (–2 percent) in North America.
Covid-19 had an approximately 300 million euro negative net impact on net sales and the majority of these net sales are expected to be shifted to future periods, rather than being lost, Nokia said.
Nokia said it finished 2019 with 4G+5G mobile radio market share standing at ~27 percent excluding China. Nokia is excluding China, given the profitability challenges and unique market dynamics in that region.