On April 24, Nokia reported its first quarter earnings for 2025 that fell significantly short of market expectations. Analysts are attributing this drop to supply chain disruptions after Trump’s tariffs, increased geopolitical tensions between China and the US, and sector-wide competitive pressure.

Nokia reported a 36% below-average performance from the analysts’ forecast. The announcement raised concerns about Nokia’s North American operations, which had previously been showing signs of recovery despite a gradual erosion of market share to Swedish rival Ericsson.

Nokia’s net sales for the first quarter stood at 4.39 billion euros, however, it shows a 3% decline on a constant-currency basis. The newly appointed CEO, Justin Hotard, gave an optimistic view about the company. He said 

“This is not a discussion on moving our headquarters. What is more critical is the potential to invest further in research, development, and manufacturing capabilities in the U.S.”

He further added 

“Telecommunications is not a place where customers tend to change their expenditures” 

Nokia Expanding in North America

Hotard’s remarks indicate a broader strategic policy of the company toward deepening Nokia’s hold in North America. The company already maintains more than a dozen sites in the region and houses the iconic Bell Labs in New Jersey, a longstanding hub for innovation.

Nokia-T Mobile Partnership 

Nokia also announced on Thursday a multi-year extension of its partnership with T-Mobile to expand the carrier’s 5G network coverage. While financial details of the deal were not disclosed, the move is expected to strengthen Nokia’s positioning in a competitive and policy-sensitive market.