Nokia Gets a Boost in China

Nokia Gets a Boost in China
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Nokia received a boost in the Chinese market after securing a 5G radio contract in one of three tenders held by operator China Mobile. Their Swedish rival Ericsson was awarded a lower share due to an ongoing spat between the nations.

A document published by China Mobile showed Nokia Shanghai Bell had been awarded a 10.1 percent share in one of three 700MHz tenders, while Ericsson received 9.6 percent in another contract. As is commonplace, Chinese vendor Huawei picked up the majority of all three contracts, with ZTE also winning business, followed by smaller domestic company Datang Corporation.

Nokia missed out on 5G contracts with all three major Chinese operators in 2020, but CEO Pekka Lundmark said in April it would try to rectify the situation, vowing to bid on the second round of network tenders. The company indicated it could be set for good news after raising its financial guidance last week, claiming a strong H1.

For Ericsson, fortunes in China are comparatively bleaker. Not only did it secure a lesser share than its chief European rival in China Mobile’s tender, but last week stated it took a revenue hit in Q2 due to lower sales in mainland China. Going forward, it is also forecasting a lower market share, as retaliation for Sweden’s decision to ban products made by Huawei and ZTE from 5G networks.