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Ericsson profits down 30pc as market shrinks
SWEDISH mobile giant Ericsson has reported a drop of almost a third in first-quarter profit with sales also dipping.
The telecom equipment market contracted sharply in 2009 as the global downturn crimped operator spending.
Its sales fell nine per cent year-on-year while operating profit, excluding joint ventures and restructuring costs, was 4.5bn Swedish crowns (£403m).
The majority of analyst forecasts are for mi imal market growth at best in 2010 and competition – especially from Chinese – is also set to remain fierce.
Chief Executive Hans Vestberg said in a statement: “The market conditions we saw in the second half of 2009 prevailed also in this quarter with mixed operator investment behaviour across regions and markets.”