Nokia earnings: Supply disruption hits revenue
The big number: Nokia said COVID-19 reduced its first-quarter revenue by around $217 million. That was "largely the result of supply issues associated with disruptions in China," CEO Rajeev Suri said.
People are talking: "We are the only foreign supplier in China Unicom for 5G core," Suri told Reuters in an interview released alongside the earnings report.
Opportunities: Like other suppliers of 5G hardware, Nokia remains bullish about the prospects of the technology in 2020, even as the pandemic continues on. The company said it thinks its 5G equipment can propel the company forward throughout the rest of the year. Nokia has been focused on reducing the 5G products' costs, which Suri said is going according to plan.
Threats: There's still a risk that 5G rollouts might be delayed in the back half of the year. "Some customers may reassess their spending plans," Suri said, adding that the company could also face further supply challenges. "We expect the majority of this COVID-19 impact to be in Q2," he said.