Should Investors Worry About Ericsson's Challenges in China's 5G Market?
Following a Swedish court's decision last month to uphold Swedish telecom regulator PTS's decision to ban Chinese vendor Huawei from selling its 5G equipment in Sweden, the threat of Ericsson's (NASDAQ: ERIC) business in China suffering negative consequences intensified and then it materialized.
During the second quarter, the Swedish telecom specialist saw a significant drop in its sales in China. And beyond the short term, Ericsson could lose significant market share there. So should investors worry about this development?
Overall, Ericsson had a good second quarter. Revenue declined 1% year over year to 54.9 billion Swedish krona ($6.32 billion). But adjusted for constant currency and other comparable items, revenue actually increased 8% year over year, thanks to the strong performance of 5G deployments in the U.S. and Europe.
Source Fool.com
