Nokia slashes 2019 and 2020 profit outlook in fight for 5G business

Finland’s Nokia slashed its 2019 and 2020 profit outlook on Thursday, saying profits would come under pressure as the company spends more to fend off rivals in the fast-growing 5G networks business.
The telecom network equipment maker, which met third-quarter profit expectations, also said it would pause dividend payments to raise investments in 5G and only resume them when its cash position improves to around 2 billion euros.
“Competitive intensity has increased in some accounts as some competitors seek to take share in the early stage of 5G,” it said in a statement.
Nokia shares plunged 21% to 3.72 euros in morning trade as the company said key customers in its biggest 5G market — North America — were limiting spending due to proposed mergers. Nokia shares are down 30% this year.