Ericsson CEO Expresses Concerns Over Repercussions Of Sweden's Huawei Ban: FT
- Telefonaktiebolaget LM Ericsson's (NASDAQ: ERIC) sales dived in China following its warning against retaliation due to Sweden's ban of its Chinese rival, Huawei Technologies Co, from building 5G networks, the Financial Times reports.
- Ericsson's Q2 revenue from China plunged 63.4% year-on-year to SKr1.5 billion. As a result, Ericsson's overall group sales declined for the first time in three years. It missed both its Q2 revenue and EPS consensus.
- CEO Borje Ekholm warned against potential lower market share in China following the 2020 ban over spying and technology theft concerns.
- The U.S. influenced the ban as former president Donald Trump even tempted its allies by talking about acquiring a stake in Huawei rivals Ericsson or Nokia Oyj (NYSE: NOK).
- Ericsson will also lose its SKr10 billion in revenues in China, which it earned in the second half of 2020.
- Price action: ERIC shares traded lower by 10.80% at $11.85 on the last check Friday.
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