On Monday, when the analysts of Goldman Sachs lowered the stock, the shares of Finnish’s firm Nokia dropped by 3%.
The analysts Hameed Awan and Alexander Duwan said through the note that due to the competition between Samsung, the tech giant of South Korea and Ericsson, the Swedish challengers, Nokia is facing risks of getting downgraded.
Nokia shares have performed so well in the past 6 months that it had expanded the tech sector of Europe by over 2%. After which the investors had started hoping that the involvement of 5G network will boost the revenues of the Finnish telecommunication firm. The analysts of Goldman said that the investors might have confidence in Nokia.
Analysts said that they believe that further more unity will be down sided. They mentioned by their new estimates that revenues of the lower network are going to slow down the profits of exclusive businesses and will have a direction of more traditional margin.
Goldman estimated from an analysis that both tech giants of China Huawei and Nokia have 23% each in the global market of the wireless network. While Ericsson has a 29% share in the global market. According to this, estimation is still behind these three companies as it has only 5% of the global share.
As the 5G wireless networks soon going to come in practice, Samsung is also moving forward to improve its position in the global market by providing equipment of the 5G network.
Goldman’s analysts said that Samsung is now added with the firm of South Korea and made a partnership with telecommunication operators Verizon for providing equipment of 5G network in United States. The analysts said that in upcoming years these acts will result in an increase of Samsung’s global market share which will be double of current margin and will increase the risks for Nokia.
Analysts said that they are already seeing Samsung moving towards success because it already has great quality and now it will be working with 5G operators Verizon who are famous all over the world.