Nokia reported a 32% year-on-year drop in operating profit in the second quarter due to falling demand for 5G telecom equipment.

However, the company said it aims to recover sales by the end of this year, citing expectations of increased demand in North America.

According to Nokia's Q2 and H1 2024 report released on the 18th, Nokia's net sales in the second quarter decreased to 423 million euros (462.38 million dollars, approximately 638.4 billion won) from 619 million euros in the same quarter a year ago.

Reuters reported that telecommunications equipment purchases by companies like Nokia and Ericsson-LG were hit hard. They attributed this to a slowdown in 5G technology investment in India.

Meanwhile, Ericsson-LG reported on the 18th that it expects a surge in consumer satisfaction with mid-band 5G performance, particularly in Northeast Asia. The company announced its goal of increasing 5G subscribers in Northeast Asia to 80% by 2029.

CEO Pekka Lundmark also said that while sales will take longer to recover than expected, he expects net sales to increase significantly in the second half of the year. As evidence, he cited improvements in the U.S. fiber optic market and the U.S. government's $42 billion program to increase citizens' access to high-speed broadband internet.

Nokia said it “sees further opportunities to increase margins beyond 2026 and can achieve an operating margin of 14% in the long term.”