{"id":40103,"date":"2020-06-08T10:30:21","date_gmt":"2020-06-08T10:30:21","guid":{"rendered":"https:\/\/www.mobileworldlive.com\/?p=283483"},"modified":"2020-06-08T10:30:21","modified_gmt":"2020-06-08T10:30:21","slug":"ericsson-braced-for-china-5g-hit","status":"publish","type":"post","link":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/2020\/06\/08\/ericsson-braced-for-china-5g-hit\/","title":{"rendered":"Ericsson braced for China 5G hit"},"content":{"rendered":"

<\/p>\n

\tEricsson planned a write-down of assets related to its China business, a move which will see the Swedish vendor hit with costs amounting to SEK1 billion ($108.6 million) in the current quarter.<\/p>\n

In a statement, Ericsson said the write down was previously anticipated: it warned in its Q1 results [1] it expected to be hit by a temporary negative gross margin in China.<\/p>\n

The company explained the hit was an effect of strengthening its position in China after winning 5G contracts [2] with all three major operators, and it would be hurt by costs related to asset write-downs of pre-commercial product inventory for the market.<\/p>\n

It will record the costs in its Networks segment, impacting gross margin.<\/p>\n

However, the effect is not expected to be long term, with its overall 5G business expected to have healthy profitability.<\/p>\n

\u201cWhile the deployment of 5G in China will continue to be dilutive to segment Networks gross margin short-term, it is expected to contribute positively to gross and operating income from the second half of 2020 and in line with the business plan be profitable over time,\u201d the vendor stated.<\/p>\n

Financial targets for 2020 and 2022 remained unchanged<\/p>\n

While Huawei and ZTE picked up the majority of 5G contracts from China Mobile, China Unicom and China Telecom, Ericsson was one of the biggest non-domestic winners, securing around 10 per cent of contracts, largely at the expense of European rival Nokia. [3]<\/p>\n

[1] https:\/\/www.mobileworldlive.com\/featured-content\/home-banner\/ericsson-cautions-on-virus-impact-to-europe-5g\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/nokia-misses-massive-china-mobile-5g-tender\/
\n[3] https:\/\/www.mobileworldlive.com\/blog\/blog-what-is-next-for-nokia-in-china\/<\/p>\n\n

\\\"IT\u96fb\u8166\u88dc\u7fd2
\u7acb\u523b\u8a3b\u518a\u53ca\u5831\u540d\u96fb\u8166\u88dc\u7fd2\u8ab2\u7a0b\u5427!<\/figcaption><\/figure>\r\n<\/br>Find A Teacher Form:\r\n<\/br>https:\/\/docs.google.com\/forms\/d\/1vREBnX5n262umf4wU5U2pyTwvk9O-JrAgblA-wH9GFQ\/viewform?edit_requested=true#responses\r\n<\/br><\/br>Email:\r\n<\/br>public1989two@gmail.com






\r\nwww.itsec.hk<\/a>
\r\nwww.itsec.vip<\/a>
\r\nwww.itseceu.uk<\/a>
<\/p>","protected":false},"excerpt":{"rendered":"

Ericsson planned a write-down of assets related to its China business, a move which will …<\/p>\n

The post Ericsson braced for China 5G hit<\/a> appeared first on Mobile World Live<\/a>.<\/p>\n<\/div>","protected":false},"author":247,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"slim_seo":{"title":"Ericsson braced for China 5G hit - ITTeacherITFreelance.hk","description":"Ericsson planned a write-down of assets related to its China business, a move which will ... The post Ericsson braced for China 5G hit appeared first on Mobile"},"footnotes":""},"categories":[11,8],"tags":[4099],"_links":{"self":[{"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/40103"}],"collection":[{"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/247"}],"replies":[{"embeddable":true,"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=40103"}],"version-history":[{"count":1,"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/40103\/revisions"}],"predecessor-version":[{"id":40104,"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/40103\/revisions\/40104"}],"wp:attachment":[{"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=40103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=40103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itteacheritfreelance.hk\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=40103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}