Ericsson profit beats expectations

Ericsson's third-quarter earnings beat expectations on Tuesday (October 19).

Operating earnings rose to just over $1 billion, slightly up from a year ago.

The Swedish tech firm said Tuesday that strong sales of 5G equipment in most of the world was key.

Deals from all three U.S. telecom firms - Verizon, AT&T and T-Mobile - helped absorb losses in China.

Ericsson's proportion of revenue from China has dropped heavily - down to 3% from a total of around 10%.

Chinese sales fell by $418 million in the third quarter alone.

It comes a year after Sweden banned China’s Huawei from selling 5G gear in the country

Ericsson has since lost most of its share in the latest rounds of telecom tenders in China.

The company also said global supply chain issues had started to bite.

It was not able to deliver certain hardware to its customers due to a chip shortage and logistics problems.

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