Chinese tech companies have reportedly lagged its domestic industry while Ericsson is currently on a domineering position. Both China Unicom and China Telecom have lost 3% of their market shares to the Swedish tech company, in a consortium of 5G radio contract, Techbooky writes.
According to a tender document published by the Chinese companies, Ericsson triumphed while competing against Huawei, China Unicom, ZTE, China Telecom, Nokia, etc. E
Representing Finland in the Chinese digital marketplace, Nokia had a better chance at earning more than what Ericsson gained from China Unicom and China Telecom. Still, Ericsson triumphed with the contract.
For context, Ericsson had potential to lose its market share to Nokia, but the unexpected happened — Ericsson solely took down the Chinese in its domestic marketplace, and Nokia ended up with no dime.
While the Chinese announced the winner in its business report, they did not included the actual figures each tech company gained after Ericsson won the contract.
Aside from Nokia with the most potential at the time, other Chinese based tech companies such as Datang Telecom (governmental digital infrastructure), ZTE, and Huawei had a better chance to gain more shares of the contract.
Remember, the Swedish tech industry reportedly banned Chinese technology in its country — Ericsson then revealed a forecast about its business productivity. At the time, Ericsson predictions began to manifest — 2% out of the existing 11% of their market shares on China Mobile dropped.
As the Swedish banned technology supplies from China, Nokia’s business continued to bloom with 4% extra market share that could have belonged to Ericsson. Still, market share differences could not determine the Chinese based 5G contrast.
It is worth noting that this contract Ericsson won over other tech companies, is the second phase of the Chinese 5G radio contract that is supported by a consortium of Chinese companies.
Conforming to several restrictions on the Chinese and its technology that is believed to be a threat to national security. The US sanctions on Huawei and its technology, influenced other Europeans to join the campaign for restricting Chinese based technology.
Huawei’s technology has been feared to be a spy tool used by its government which threatens other countries security. While the Chinese tech company continues to deny all allegations Nokia happens to retrace its steps to attain financial growth.
Nokia’s spokesman confirmed their losses to Ericsson as well as acknowledging the Chinese tender result. “We respect the customers’ decision and remain committed to continuing to support China Telecom and China Unicom’s business in the future.”
Despite several issues restrictions on the Chinese tech companies, the Asian tech industry still remains the most competitive owning the most distributed 5G technology around China and across the globe.