Nokia Sales Drop 23% to €5.7 bn in Q4 2023

Telecom equipment maker Nokia has reported sales of €5.707 billion (down 23 percent) in Q4 2023 and €22.258 billion (down 11 percent) for the year 2023.
Nokia @ India Mobile Congress 2023
Nokia has generated sales of €2,003 million (down 26 percent) from Network Infrastructure, €2,450 million (down 17 percent) from Mobile Networks, €977 million (down 8 percent) from Cloud and Network Services, and €251 million (down 63 percent) from Nokia Technologies in the fourth quarter of 2023.

Nokia expects full year 2024 comparable operating profit of between EUR 2.3 billion to 2.9 billion and free cash flow conversion from comparable operating profit of between 30 percent and 60 percent.

Nokia has generated sales of €2,291 million (down 13 percent) in Asia Pacific, €5,873 million (down 12 percent)in Europe, €1,303 million (down 18 percent)in Greater China, €2,842 million (up 120 percent)in India, €1,046 million (down 14 percent) in Latin America, €2,050 million (up 4 percent) in Middle East & Africa, €5,733 million (down 32 percent) in North America, €1,120 million (down 3 percent) in Submarine Networks business in 2023.

Nokia has shared insights into its performance across various global regions.

Asia Pacific: Sales in the Asia Pacific region witnessed a decline in Network Infrastructure and Cloud and Network Services, partially offset by an increase in Mobile Networks.

Europe: Net sales in Europe were somewhat impacted by a decline in Nokia Technologies, primarily reported in this region. Excluding Nokia Technologies, Europe experienced a decline in net sales, notably in Network Infrastructure, including IP Networks and Fixed Networks, as well as Mobile Networks.

Greater China: Net sales in Greater China remained largely stable during the quarter.

India: India reported a decline in the quarter, particularly in Mobile Networks, attributed to the normalization of significant 5G deployments initiated in the previous year. Additionally, declines were noted in Network Infrastructure in both Optical Networks and Fixed Networks.

Latin America: Net sales in Latin America reflected a decline in Network Infrastructure across IP Networks and Fixed Networks, partially offset by a slight increase in Mobile Networks and robust growth in Cloud and Network Services.

Middle East & Africa: Growth in the Middle East & Africa was driven by Mobile Networks and Network Infrastructure, partially offset by Cloud and Network Services.

North America: North America experienced a substantial decline, reflecting weakness in both Mobile Networks and Network Infrastructure. Customers evaluated spending and digested inventories, with a lesser extent of decline noted in Cloud and Network Services.

Furthermore, Nokia addressed the impact of AT&T’s strategic decision, announced in December, to transition to a largely single-sourced RAN network. Nokia’s CEO expressed disappointment, stating, “It does not reflect the technological competitiveness we have achieved with our products.” Nokia anticipates a decrease in revenue from AT&T in Mobile Networks over the next 2-3 years due to AT&T’s commitment to an Open RAN deployment with other vendors over the next five years.

As of the announcement, AT&T accounted for 5-8 percent of Mobile Networks net sales in 2023. While Nokia expects Mobile Networks to remain profitable, AT&T’s decision is expected to delay the timeline for achieving a double-digit operating margin by up to 2 years. Despite this, Nokia remains a key partner for AT&T in both its Network Infrastructure and Cloud and Network Services businesses. AT&T will continue to purchase products such as microwave radio links and femto solutions from Nokia’s Mobile Networks division.

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