Plummeting for the fourth quarter, Nokia’s India sales are mirroring Ericsson’s decline. Both firms eye ₹280 billion contracts with Vodafone Idea to boost revenues amid 5G challenges.
Nokia’s smartphone sales in India have declined for the fourth consecutive quarter, mirroring a recent report from its rival Ericsson. Both companies are facing reduced capital expenditures from major telecom clients Reliance Jio and Bharti Airtel, who have completed their 5G rollouts despite experiencing low capacity utilisation.
Both firms recently secured substantial contracts, valued at around ₹280 billion, to supply network equipment for Vi’s 4G expansion and upcoming 5G deployments. According to a report by the Economic Times, industry analysts anticipate that Nokia and Ericsson will increasingly depend on their recent contracts with Vodafone Idea (Vi) to bolster sales in India and support global growth.
In its third-quarter earnings report, Nokia revealed a 44% year-on-year (YoY) drop in India net sales, totalling €316 million (₹28.85 billion). Similarly, Ericsson reported a 44% decrease in sales in its Southeast Asia, Oceania, and India markets, amounting to 7.7 billion Swedish Krona (₹61.55 billion).
Nokia’s overall net sales declined 7% YoY, mainly due to reduced mobile network business in India, where 5G deployments peaked in mid-2023. CEO Pekka Lundmark noted that much of this decline was attributed to a strong performance in the previous year.
However, amid these challenges, India remains Ericsson’s second-largest market by net sales, though its contribution has dropped to 5% from 15% YoY. Similarly, Nokia’s contribution fell from 12% to 7.3%. Both companies enjoyed increased sales following the national rollout of 5G networks in late 2022.
Now, Jio and Airtel are focusing on revenue growth through rate hikes, as their substantial investments in spectrum and 5G networks have yet to yield significant returns. With modest capacity utilisation and limited use cases for next-gen mobile services, recent contracts with Vi are crucial for both companies.
Vi plans to invest ₹300 billion in 4G and 5G equipment from Nokia, Ericsson, and Samsung over three years to enhance its competitiveness against Jio and Airtel.
