Ericsson strengthens its position in China and writes down assets
· Ericsson has strengthened its market share in China by winning 5G contracts with all three major operators · The overall 5G business in China is expected to have a healthy profitability and is in line with our plans · In line with the planning assumptions included in the Q1 2020 earnings report, initial gross margin of the 5G contracts in China is negative due to high initial costs for product introduction · In addition, Q2 2020 will be impacted by SEK 1 b. in costs related to asset write-downs of pre-commercial product inventory for the Chinese market · Group financial targets