Ericsson CEO Expresses Concerns Over Repercussions Of Sweden's Huawei Ban: FT - Telefonaktiebolaget L M (NASDAQ:ERIC)

Telefonaktiebolaget LM Ericsson's ERIC sales dived in China following its warning against retaliation due to Sweden's ban of its Chinese rival, Huawei Technologies Co, from building 5G networks, the Financial Times reports.
Ericsson's Q2 revenue from China plunged 63.4% year-on-year to SKr1.5 billion. As a result, Ericsson's overall group sales declined for the first time in three years. It missed both its Q2 revenue and EPS consensus.
CEO Borje Ekholm warned against potential lower market share in China following the 2020 ban over spying and technology theft concerns.
The U.S. influenced the ban as former president Donald Trump even tempted its allies by talking about acquiring a stake in Huawei rivals Ericsson or Nokia Oyj NOK.
Ericsson will also lose its SKr10 billion in revenues in China, which it earned in the second half of 2020.
Price action: ERIC shares traded lower by 10.80% at $11.85 on the last check Friday.