Ericsson: The short-term impact of the new corona virus on the supply chain is close to zero with few infections

“The short-term impact of the new coronavirus on our supply chain is close to zero,” Ericsson CEO Borje Ekholm said, according tomedia. However, Borje Ekholm confirmed in the company’s website announcement that “very few” employees have been infected with the COVID-19 virus.

“So far, all of Ericsson’s production sites have been operational,” he wrote. This means that the short-term impact of the new coronavirus on our supply chain is close to zero. Looking ahead, we believe we have a flexible supply chain with production capacity in multiple regions. We can also use components and other materials to maintain production and operation. However, the closure of borders by many countries naturally carries the risk of affecting our logistics chain. “

Ericsson noted in particular that in the second quarter of 2020, “we can meet current forecasts, taking into account the known impact and expected results of mitigation measures following the outbreak.” The company added that its main production facilities are in the United States, Mexico, India, China, Poland and Estonia.

The company confirmed that its plant in China had been temporarily closed to prevent the spread of the virus, but had now resumed operations.

Ericsson: The short-term impact of the new corona virus on the supply chain is close to zero with few infections

Screenshot of Ericsson’s official website content.

For employees infected with the new coronavirus, Borje Ekholm wrote, “Hopefully they will recover safely soon.” We urge all employees who can work from home to be telecommuting from home to ensure that their colleagues are as safe as possible. If some employees have to work in the office, we ask them to maintain proper social distance. “

Ericsson’s statement largely allayed concerns among operators that the spread of the new coronavirus could affect the supply of 5G devices. Ericsson, like Nokia and Samsung, is a major supplier to the U.S. wireless network equipment market and has announced 5G device supply agreements with almost all major U.S. mobile operators.

However, this does not mean that COVID-19 will not have a significant impact on wireless network operators in the United States and around the world. For example, Wall Street analysts at MarketResearch Firm LightShed Partners expect total U.S. post-pay phone subscribers to grow by 45 percent in the second quarter of 2020 from a year earlier, largely because thousands of telecommunications service offices (retail stores) are now closed nationwide.