View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data Centre
October 26, 2012

Ericsson reports 43% decline in Q3 2012 profit

Decline was due to curbed spending by operators in a faltering economy

By CBR Staff Writer

Swedish firm Ericsson has reported 42% decline in its profit during the third quarter (Q3) of 2012 to SEK2.18bn ($325.9m), a decrease from SEK3.8bn ($568m) reported during Q3 2011.

Ericsson president and CEO Hans Vestberg said demand for Global Services and Support Solutions continued to be good, while Networks showed a decline in sales year on year.

"In North America Networks sales developed favorably, despite the expected decline in CDMA sales, while parts of Europe, China, Korea and Russia continued to be slow," Vestberg said.

"The growing Global Services business contributes not only with top line but also with stable operating profitability and, together with Support Solutions, represented more than 50% of Group sales," added Vestberg.

Ericsson claims the decline was due to curbed spending by operators in a faltering economy and competition harmed subscriber growth.

During the period, the firm’s revenue declined to SEK54.55bn ($8.15bn) from SEK55.52bn ($8.3bn), despite a 16% rise in sales in North America to SEK14bn ($2.09bn).

"There are now one billion smartphones in the world and the number is expected to reach three billion in 2017," Vestberg said.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

"The introduction of new devices and applications put higher consumer demands on network performance and quality. This drives demand for our technology, software and services capabilities."

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.