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Ericsson reports 38% drop in net sales for Q1 2024 in SE Asia, Oceania, and India

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In Short:


Ericsson, a company in Sweden, reported a 38% decrease in sales in South East Asia, Oceania, and India. India is the second-largest market for Ericsson. The sales decline was due to reduced investments in India. Reliance Jio and Bharti Airtel have commercial 5G deals with Ericsson and other companies. Ericsson’s CEO expects further decline in the radio network market this year, but is focusing on improving margins and cash flow.

Ericsson Reports 38% Decline in Net Sales in South East Asia, Oceania, and India

<p>(FILES) A photo taken on October 20, 2022 shows the Ericsson headquarters with the company's logo in Stockholm, Sweden. (Photo by Lars SCHRODER / TT NEWS AGENCY / AFP) / SWEDEN OUT</p>
(FILES) A photo taken on October 20, 2022 shows the Ericsson headquarters with the company’s logo in Stockholm, Sweden. (Photo by Lars SCHRODER / TT NEWS AGENCY / AFP) / SWEDEN OUT

New Delhi: Ericsson reported a 38% year-over-year decline in net sales, from 13.9 billion SEK in Q1 2023 to 8.6 billion SEK in Q1 2024, in market area South East Asia, Oceania, and India. An Ericsson spokesperson mentioned that India remains the second-largest market for the company, contributing 10% of global sales in the January to March quarter of 2024.

Market Scenario

This is even as the vendor’s sales declined in India after a record 2023, “as the market started transitioning to more normalized investment levels,” Ericsson said in its earnings report. The company has commercial 5G radio deals with India’s top two telecom operators Reliance Jio and Bharti Airtel.

Both telcos also have commercial 5G radio deals with Ericsson’s Finnish counterpart Nokia, and are collaborating with South Korea’s Samsung and US-based Cisco for their fifth-generation networks.

Subscriber Base

Reliance Jio is estimated to have crossed the 100-million mark of pure 5G users at March-end, while closest rival Bharti Airtel wrapped up the fiscal fourth quarter with nearly 75 million 5G subscribers.

In market area South East Asia, Oceania, and India, sales adjusted for comparable units and currency decreased by 37% year-over-year.

Overall Performance

At an overall level across markets, Ericsson reported a 15% year-over-year decline in net sales from 62.6 billion SEK in Q1 2023 to 53.3 billion SEK in Q1 2025. In the Mobile Networks segment, the sales decline was most pronounced in the market area South East Asia, Oceania, and India, with a decrease of 42%.

“In Q1, we continued to execute on our strategy to strengthen our leadership in mobile networks, drive a focused expansion in enterprise, and pursue cultural transformation. We maintained our leading market position, but as expected our customers continued to exercise caution with their investments,” said Borje Ekholm, President and CEO of Ericsson.

Future Outlook

Ekholm mentioned that Ericsson expects a further decline in the RAN (radio access network) market at least through the end of this year, “as customers remain cautious with their investments and the pace of investment in India continues to normalize”. He also added that in the second half, margins should improve due to a better business mix and the company remains focused on delivering stronger cash flow based on operating discipline.


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