Telecommunications, information technology and consumer electronics company Nokia Corp. (HEL: NOKIA) reported its first quarter results in which it performed stronger than expected thanks to the increasing demand of 5G equipment.
The Finland based company has been heavily investing in research while simultaneously cutting operational costs and this has place the company at a better competing position against its rivals Huawei Technologies and Ericsson.
For the first quarter, Nokia reported an operating profit of $613 million (583 million euros) representing an increase from the 551 million euros it reported last year at a similar quarter. Similarly, this was also on the higher side compared to the 513 million euros expected by analysts.
Net sales for the quarter rose by 5% to 5.35 billion euros again soaring above the 5.26 billion estimated by analysts.
These good results come at a time when the world is experiencing a chip shortage which has affected many sectors including the tech industry. The global chip shortage has resulted to inflation of the computer chips which in turn leads to increase in price of the goods.
“It’s very clear that prices are going up. There is inflation in parts, there is inflation in semiconductors, there is inflation pretty much in everything. We are engaging with our customers now with the goal to see how much of this can be passed on to customer prices,” said he CEO of Nokia, Pekka Lundmark.