Nokia's telecom equipment maker announced a surprising loss for the quarter, while its competitors lowered prices in an attempt to secure participation in the fifth generation mobile network. This makes it difficult for the Finnish company to meet its profit targets for 2019, Reuters reported.
Nokia says it is currently "under considerable pressure for its operation in the second half of the year". She announced a adjusted operating profit of 59 million euros ($ 66 million) compared to the expected profits of analysts of 282.7 million euros.
Nokia has already said that their 5G network costs will be reduced in the second half of the year.
Chief Executive Officer Raychev Suri said that competitors are much more "commercially aggressive" in the early stages of the launch of 5G.
Nokia's bad report is against the good quarterly results of rivals Ericsson. Last week, the Swedish company released data that responded to analysts' expectations, but warned they were concluding less favorable conditions to secure long-term business opportunities.
Nokia and Ericsson are trying to exploit the problems of the Chinese rival Huawei Technologies, which faces criticism from many countries over fears that its equipment could be used to spy in favor of Beijing.
Nokia's shares rose 2.6 percent from the beginning of the year. They are worse than those of Ericsson, whose price increased by 22% over the same period.
Nokia has confirmed its earnings per share this year between 0.25 and 0.29 euros.