Ericsson is doing well. Ericsson's sales have benefited from the weak krona, but probably also from Huawei's withdrawal from the trade war and the power play between China and the US. It is mainly in the North American market that Ericsson sees that 5g expansion is faster than expected. At the same time, it says that it is difficult to make more money on the new technology, at least initially.
But the increased skepticism about one of Ericsson's main competitors, Huawei, is also about a concern among countries about how independent the company and its technology really are from the authoritarian Chinese state.
And in the middle stands Ericsson. They themselves would like to emphasize that they win contracts on the fact that their technology is the best. It is diplomatic and strategic when the largest future 5g market is assumed to be just in China and the company has manufacturing in the country. Huawei has already won a number of contracts in the market that are expected to have over 100 million users by the end of 2020.
Despite strong sales for Ericsson, there is a loss of SEK 4.2 billion for this quarter. Because in this quarterly report, Ericsson is also grazing the highest fine ever in Swedish industrial history. For corrupt transactions in Southeast Asia and Africa, Ericsson has reserved a total of SEK 11.5 billion in fines to the US authority SEC. Börje Ekholm would like to see the thing now taken out. As a long-time member of Ericsson's board of directors, the corruption in the company should also reasonably also splurge on him and the major owner Investor.