The Swedish company Ericsson announced that it has concluded contracts for the supply of equipment for 5G networks with all three major Chinese operators. However, China Mobile, China Telecom and China Unicom will not only purchase equipment from Ericsson. Moreover, the bulk of orders went to Chinese companies Huawei and ZTE. Although the exact amounts are not called, we are talking about billions of dollars.
Ericsson has warned shareholders that an increase in the share of strategic contracts will negatively impact earnings in the second quarter. This is due to the high costs at the initial stage of new products. However, over the duration of the contracts, the specified area of activity should show good profitability.
In addition, a Swedish telecommunications equipment manufacturer wrote off $ 110 million worth of inventories in the Chinese market. However, the forecast of financial indicators for the year remained unchanged.