Last Friday, renowned Mobile telecom company Ericsson voiced out their concern regarding the uncertainty of sales in the last quarter of the year. This is said to have been as a result of the recent slowdown experienced in North America due to the reduced spending of operators on it who had invested heavily on high speed networks. US Network operators have been linked to huge spending especially on the 4G/LTE Network projects. This was necessitated by the increased demand of video call and mobile internet by the consumers. This alongside other things has made the World’s number one Network Equipment maker, Ericsson, to be unsure of its near time sales based on the last cash flows in North America. This comes at a time when the US operators are facing a looming auction of long wave radio spectrum in a bid to improve the strength of their networks.
Nevertheless, profit and sales growth of the same have been experienced in other parts of the World including Middle East, Russia, India and China. As such, the North American drop in sale has a lighter impact on the global net sales which is said to have increased. This bizarre trend is best explained by Bengt Nordstrom, the Chief Executive at Telecoms Consultancy Firm in North stream who says that North America and Japan are through with LTE programs which required their services. This isn’t the same case with Middle East and China regions undergoing the same right now and hence the increased profits in these areas.
In line with this, the company is planning to invest in the China Market which is greatly promising. It has been predicted to be the biggest market to LTE worldwide and therefore this is seen as a perfect move.The shares of the company on the other hand is doing quite well in global market with the latest sale of 57.6 billion Swedish crowns against the estimated sale of 55.4 billion being a good testimony to this.
