HELSINKI (AP) — Nokia has warned that its full-year profits this year and next will be lower than previously thought because of acute competition and costs related to new-generation 5G networks.

The warning from the Espoo, Finland-based maker, came as it reported a 14% decline in third-quarter net profits of 267 million euros ($296 million), against 309 million euros a year earlier. Sales were up 4%, however, at 5.7 billion euros.

Nokia CEO Rajeev Suri said Thursday that risks previously flagged regarding the initial phase of 5G are "now materializing." Other factors weighing on the business, he said, are "profitability challenges" in China and business development uncertainties in North America.

The company said it now has 48 commercial 5G deals and 15 live networks.