The growth in India, as well as, the resumption of investments by some early 5G markets helped Ericsson partly offset the decline in North America where the Swedish telecom gear maker\u2019s telecom customers have reduced both their roll-out pace and inventory levels.<\/p>\n
\u201cThe decline in North America was partly offset by growth in India as well as some early 5G markets resuming investments,\u201d Borje Ekholm, President and CEO, of Ericsson, said in the company\u2019s earnings report.<\/p>\n
As per the earnings report, Ericsson\u2019s sales adjusted for comparable units and currency increased in South East Asia, Oceania and India and in the Middle East and Africa while sales declined the vendor\u2019s other three key market areas.<\/p>\n
In South East Asia, Oceania and India, sales adjusted for comparable units and currency increased by 74% year-over-year, driven by 5G market share gains in India. Ericsson\u2019s sales in North America adjusted for comparable units and currency declined by 51% year-over-year.<\/p>\n
Ericsson had bagged 5G equipment deals from India\u2019s top two telecom operators Reliance Jio and Bharti Airtel, and is helping them roll out the fifth-generation mobile networks in the country. Nokia, Samsung, and Cisco are also working with both telcos for their 5G networks rollout.<\/p>\n
Ericsson expects weakness in its mobile networks business to persist in 2024, as it reported a fall in demand for 5G equipment in North America.<\/p>\n
\u201cThe mobile networks market has been flattish for two decades, but with cyclicality, and we expect that to continue,\u201d said Ekholm. \u201cCompetitive dynamics in our customer markets tend to lead to relatively sharp increase in investments when the market turns, and we are seeing some positive signs in early 5G markets,\u201d he added.<\/p>\n
Networks organic sales in North America were down by 60% year-over-year in Q3 2023, due to customers\u2018 inventory adjustments and a slower deployment pace. North America now accounts for 23% of sales, compared to 48% earlier.<\/p>\n
\u201cGiven current uncertainty we will not give guidance beyond Q4, 2023. As timing for the market mix recovery is in our customers\u2019 hands, we prudently plan for current market conditions to prevail into 2024,\u201d Ekholm said.<\/p>\n
The vendor noted that during the first nine months of 2023, macroeconomic conditions were more challenging than expected, which has led to \u201creduced volumes and pace of investment by many of Ericsson\u2019s customers, and the timing and magnitude of market recovery, particularly in North America, has been slower than expected\u201d.<\/p>\n
Ericsson cautioned that there can be \u201cno assurance\u201d as to when levels of market investment will recover.<\/p>\n
\u201cTraffic development on cellular networks could be further affected if more traffic is offloaded to Wi-Fi networks, which would have profound effects on operator voice\/broadband\/SMS revenues with possible reduced capital expenses consequences,\u201d the company said in its earnings report.<\/p>\n","protected":false},"excerpt":{"rendered":"
The growth in India, as well as, the resumption of investments by some early 5G markets helped Ericsson partly offset the decline in North America where the Swedish telecom gear maker\u2019s telecom customers have reduced both their roll-out pace and inventory levels. \u201cThe decline in North America was partly offset by growth in India as well as some early 5G markets resuming investments,\u201d Borje Ekholm, President and CEO, of Ericsson, said in the company\u2019s earnings report. As per the earnings report, Ericsson\u2019s sales adjusted for comparable units and currency increased in South East Asia, Oceania and India and in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-800583","post","type-post","status-publish","format-standard","hentry","category-telecom"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/800583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=800583"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/800583\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=800583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=800583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=800583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}