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 met in third-quarter profit expectations, said that it would pause dividend payments to raise investments in 5G and only resume them when its cash position improves to around EUR 2 billion.
 “Competitive intensity has increased in some accounts as some competitors seek to take a share in the early stage of 5G,” it said in a statement.
Nokia shares plunged 21 per cent to EUR 3.72 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 per cent this year.
The company together with Sweden’s Ericsson and Huawei sells the bulk of radio access network equipment that is key for 5G mobile services, cut back its earlier ambition on market share gains for 2019 and 2020.
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