Ericsson Reports Profit, Market Share Gains After Huawei Ban

(Bloomberg) — Ericsson reported stronger-than-expected profit as the network equipment vendor gained market share, particularly from non-Chinese rivals, after government restrictions on gear from Huawei Technologies Co..

The Stockholm-based company said Wednesday third-quarter adjusted operating profit surged 38% to 9 billion kronor ($1.03 billion), beating the average analyst estimate of 6.44 billion kronor. The adjusted gross margin rose to the highest since 2006, at 43.2%, beating an analyst estimate of 39.12%.“Our investments in technology leadership has also allowed us to continue to gain market share, and it’s worth mentioning that most of these gains come from non-Chinese competitors,” Chief Executive Officer Borje Ekholm said on a conference call.


chart, bar chart: Record Margin


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Record Margin

Key Insights

Ericsson gained market share in China and Europe as it and its Finnish rival Nokia Oyj stand to benefit from a push to restrict the use of Huawei gear for the next generation of wireless technology.

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Ericsson Reports Profit, Market Share Gains Amid Huawei Ban

(Bloomberg) — Ericsson reported stronger-than-expected profit as the network equipment vendor gained market share, particularly from rival companies outside of China, amid government restrictions on gear from Huawei Technologies Co..

The Stockholm-based company said Wednesday third-quarter adjusted operating profit surged 38% to 9 billion kronor ($1.03 billion), beating the average analyst estimate of 6.44 billion kronor.The adjusted gross margin rose to the highest since 2006, at 43.2%, beating an analyst estimate of 39.12%.


chart, bar chart: Record Margin


© Bloomberg
Record Margin

Key Insights

Ericsson gained market share in China and Europe as it and its Finnish rival Nokia Oyj stand to benefit from a push to restrict the use of Huawei gear for the next generation of wireless technology. On Tuesday this spread to its home country of Sweden, where the government said operators will be blocked from the country’s 5G spectrum auction if they plan to use equipment from Chinese vendors.“While the pandemic

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