Nokia, Ericsson Struggle to Take Advantage of US Scrutiny Against Huawei

The US-led scrutiny against China’s Huawei Technologies should have been an opportunity for Finland’s Nokia (NOK) and Sweden’s Ericsson (ERIC), but the two telecommunications equipment companies have struggled to capitalize on it, The Wall Street Journal reported on Wednesday, citing sources at major wireless providers in Europe.

The sources said the companies have been slow to launch advanced equipment to match Huawei, though both Nokia and Ericsson denied the claims in statements to The Wall Street Journal.

Other sources said Nokia and Ericsson are concerned China will retaliate against them, if they take advantage of Huawei’s situation.

From Q1 to Q3 last year, Huawei held 28% of the global telecommunications equipment market, compared to only 17% for Nokia and 13.4% for Ericsson, according to data from Dell’Oro Group.

Nokia shares were trading at $5.72 on last look, for a 1.8% loss from the previous close, while Ericsson shares were trading at $8.59 for a 3.2% loss.