Swedish communications equipment maker
Ericsson said slumping sales are likely to continue into 2024.
In the fourth quarter, sales at its networks unit declined 23%. Its North America segment posted a 50% sales drop, it said in its earnings report. Profit came in slightly ahead of expectations.
Ericsson and rival
Nokia
are coping with weakening demand for mobile equipment, particularly for 5G networks. For Ericsson in particular, slowing growth in India, one of its key markets, is hitting the bottom line.
At the end of last year, Ericsson reached a deal with
AT&T
to buy up to $14 billion of network equipment over five years.
Ericsson’s Stockholm-traded shares rose 2.8% in early trading. Its American depositary receipts gained 2.4% in premarket trading. The shares have gained more than 30% over the past three months.
Write to Brian Swint at [email protected]
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