Nokia has reported staggering growth in its net sales within the Indian market, marking a remarkable year-over-year surge of 102 per cent. This surge, equivalent to an astonishing 121 per cent when measured in constant currency terms, has propelled Nokia’s net sales in India to an impressive Rs 567 million for the third quarter of 2023.
The remarkable success story in India can be chiefly attributed to the surging demand for mobile network technology, fueled predominantly by the ongoing rollout of 5G. Nokia’s presence in the Indian telecommunications landscape has evidently strengthened, as their technologies cater to the burgeoning appetite for high-speed connectivity and advanced digital infrastructure.
However, Nokia has raised a cautious flag as it begins to witness a notable sequential slowdown in the rate of 5G deployment in India. This deceleration could potentially impact their future sales growth in the region.
“The strong growth in net sales in India was related to mobile networks as 5G deployments continued to drive year-on-year growth, while sales volumes moderated significantly on a sequential basis as the pace of deployment has started to slow,” Nokia said in its earnings report.
In sharp contrast, Nokia’s net sales in North America declined significantly, falling by 45 per cent year-on-year (40 per cent in constant currency terms) to Rs 1,256 million. This downturn can be attributed to their clients adopting a more cautious approach to expenditure and inventory management. The North American region remains a pivotal market for Nokia, and this decline in sales raises questions about the industry’s overall trajectory.
Furthermore, Nokia experienced declining net sales in most regions, except for the Middle East and Africa, where they managed to achieve a modest 2 per cent year-over-year growth. The slowdown in net sales in North America played a prominent role in the 19 per cent year-over-year decline in Nokia’s overall net sales within the mobile networks sector. The deceleration in India’s 5G deployment, which was no longer sufficient to offset the North American slowdown, emerged as a key factor.
