Telecom equipment maker Nokia reported stronger-than-expected quarterly results on Thursday, helped by demand for 5G gear despite supply chain constraints and higher prices of components.
The Finnish company has been gaining ground against rivals such as Sweden's Ericsson and China's Huawei after it made its products more competitive by investing heavily in research and found ways to cut costs from other areas.
But a global chip shortage and new COVID-19 lockdowns in China have also put more pressure on Nokia's supply chains. The shortage has also pushed up prices for parts used in Nokia's products.
"It's very clear that prices are going up," Chief Executive Officer Pekka Lundmark told Reuters. "There is inflation in parts, there is inflation in semiconductors, there is inflation pretty much in everything."