Wednesday, July 18, 2012
Network Equipment Downturn Hits Ericsson
Ericsson said that its sales decreased 6% year-on-year on an organic basis in the second quarter of 2012 to 55.3 billion Swedish krona (7.96 billion US dollars), as its sales of network equipment fell 20%. A 18% rise in revenues from global services helped to compensate for the decline in equipment sales.
Ericsson blamed the decline in network sales on an "expected decline in CDMA equipment sales as well as lower business activity in China, including weaker sales of GSM and lower 3G sales in Russia.”
However, the Stockholm-based company added:" After the initial large scale LTE rollouts in the US, Japan and Korea, we now start to see other countries following and we expect LTE deployments to commence on a broader scale also in e.g. Europe and Latin America. We have a well proven LTE solution, outperforming competition, and according to measurements end of 2011, we have a 60% market share measured in LTE volumes." source: Ericsson statement
Labels: More mobile equipment
WHERE WE'RE HEADED: TELECOMS TRENDS AROUND THE WORLD: SUBSCRIBE HERE