Pressure mounting on Ericsson’s new boss

Börje Ekholm’s honeymoon is over. Ericsson’s new CEO has remained tight-lipped about his plans for the company, something that has surprised analysts. Several are now hoping that Börje Ekholm will present a concrete decision about the future direction of the company at Wednesday’s AGM.

The telecoms giant is facing several challenges. Ericsson is losing market share, mainly to the Chinese company Huawei, and an expensive race is underway between the world’s telecoms giants over new 5G technology. Furthermore there are unanswered questions about whether parts or the whole of Ericsson are up for sale. At the turn of the year Ericsson restructured its business areas and now consists of Networks, IT & Cloud and Media. There has been speculation that the latter two will be sold or hived off.

SvD writes that its sources have had no signals from Ericsson, which most likely means that no decisions have yet been made about the future. Daniel Djurberg, telecoms analyst from Handelsbanken, says, “My guess is that it will come before midsummer. This uncertainty is not great with as strong a competitor as Huawei. I think it has already affected the stock price.”