The telecom company Ericsson made an unexpectedly large profit in the third quarter and the share has risen significantly today on the Stockholm Stock Exchange. Ericsson’s CEO Börje Ekholm wants to nurture the relationship with China.
According to the Ericsson CEO, the corona pandemic has not been negative for the company’s business, quite the opposite.
– A critical part of enabling homework is the digital infrastructure, so it is clear that there is a need for investment there and that is what drives much of our demand, says Börje Ekholm.
Ericsson’s win is reported at SEK 8.8 billion before tax, to compare with the fallow loss of close to SEK 5 billion in the same period last year which was settled by a corruption fine. Ericsson’s sales of mobile system networks are increasing, especially in China and the US, and the company believes that it will continue to do well next year.
Yesterday, the Swedish Post and Telecom Agency announced that Ericsson’s Chinese competitors Huawei and ZTE will be excluded from Swedish 5G networks.
Ericsson’s CEO Börje Ekholm does not want to answer the question of what this could mean for Ericsson.
– If we look at our market share gains so far, they actually come mainly from non-Chinese competitors, he says.
A spokesperson from China’s Foreign Ministry says, according to Reuters, that Sweden “should handle its wrong decision to avoid negative consequences for Swedish companies in China”.
Ericsson’s CEO wants to nurture the relationship.
– China is investing in expanding a 5G network with large coverage very quickly, and therefore it is extremely important for us to be there, he says.
Some have talked about possible retaliation from China, do you think there is such a risk?
– It is still the case that we must work with our customers and make sure to deliver to them the most cost-effective solutions, the best solutions. We have been doing this for a long time in China and we look forward to continuing the strong relationship we have, says Börje Ekholm.
Source: ICELAND NEWS