The Chinese tech giant Huawei amidst its downfall due to US sanctions will soon its replacement in the market. The long lost name of Ericsson will soon be seen surfacing after the Chinese rival faces impacts of the trade war. Also, its rival, Nokia may also be seen to quickly rise to the occasion. Both are most probable to replace the Chinese giant’s void, only if it falls.
The Chinese tech giant Huawei has dominated the global telecom device market for years now. What attracted the customers most to it was the unique mix of sophisticated tech at surprisingly low prices! But with the recent run of the trade war between the US and China, the company has seen a lot of loss and setback. So much so, that CEO Ren Zhengfei said that the company will suffer a loss worth about $30 billion.
With all this, the sun may shine for some of the suppressed brands. Maybe the old players will pull out big guns for rising to the occasion. The Chinese giant’s dominance will be challenged by its Scandinavian rivals, Nokia and Ericsson.
Huawei lost, not to its competition, but to the US
Rivals themselves, Nokia and Ericsson have fought long-term deals with Huawei to build 5G wireless networks.
Huawei will, for the foreseeable future, face a broader cloud of suspicion. Nokia and Ericsson are well positioned to benefit.
– John Butler (Analyst, Bloomberg Intelligence)
Both, this May, won 5G contracts from SoftBank Group Corp.’s Japanese telecom unit. This, consequently, came after replacing Huawei. Ericsson signed a deal, in March, with Denmark’s biggest phone company, TDC A/S. It had worked with Huawei since 2013 to modernize and manage its network.
Thus, John stands true when he said that they are well in a position to rise to the occasion.