Nokia (NYSE:NOK) finally appears to be turning the corner, as it posted better-than-expected first-quarter results in late April, with sales rising 3% year-over-year to 5.08 billion Euros ($6.2 billion) and gross margins expanding to 38.2% up from 36.4% last year. For perspective, Nokia’s sales declined consecutively over 2019 and 2020.
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The gains were driven by improved sales of 5G equipment and network infrastructure products which include optical and fixed networks.
Last year, Nokia’s new CEO announced plans to streamline the company into four business groups, while committing to regain a lead in the fast-growing 5G space after the company fell behind rivals such as Ericsson. The Q1 results could be an indicator that Nokia is headed in the right direction. Moreover, Nokia might still have a lot of room for gains. The company says that 5G is likely to be a 10-year cycle, which is still in the very early stages.
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