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Ericsson and Nokia - Geopolitical Risk Assessment

15. 01. 2021 Friday / By: Robert Denes / Generic / Exact time: BST / Print this page

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Read Chetan Woodun’s shared view in Seeking Alpha, a study of the geopolitical risks of Ericsson and Nokia, which is now back on the agenda following the change in the U.S. presidency. There are potential impacts on Ericsson and Nokia, the two main beneficiaries of Huawei’s troubles.

Located at different points in the roundabouts of the two Scandinavian companies, Ericsson is therefore more profitable. They must continue to grow their upline, taking into account the halfway point, during which Huawei’s ban will be gradually relaxed.

Questions arise as to whether Joe Biden’s presence in the White House will change Washington politics, continuing a trade and technology battle with China. Some investors are wondering if U.S. sanctions against Huawei will be eased.

In addition, Huawei, a fast-growing company in 2018, with its lion’s share of global 5G contracts, suddenly noticed a decline in market share in North America, Europe, Australia and Japan after President Trump issued an executive order banning the use of telecommunications equipment as a national security risk. companies back in May 2019.

The two main beneficiaries were Ericsson (ERIC) and Nokia (NOK), albeit to varying degrees. In both cases, EBIT (operating) margin increased from the second...read more

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