Trade tussles see possible of rethink of China market by Ericsson
Telecoms manufacturer Ericsson announced a 74 per cent fall in revenue from the Chinese market in Q3 of 2021, prompting a re-think of its China policy, reports Caixin.
Ericsson CEO Borje Ekholm said the company needed to adjust its cost structure as much as possible in the short run to reduce losses in China.
Ericsson generated third quarter revenue of US$151.3 million in China, compared with $581.5 million in the same period of last year. This followed a year-on-year drop of 63 per cent to $174.4 million in China revenue in the second quarter of the year.
The share of China in Ericsson’s global revenue dropped to around four per cent in the first three quarters of 2021 from eight per cent in the same period of last year, the company said.
The slide comes against the backdrop of Stockholm’s decision last year to exclude Chinese vendors from the country’s 5G networks.