Ericsson identifies China and Europe for growth
Equipment vendor Ericsson has identified China and Europe as two of its main growth target markets, after large-scale projects in the US had an effect on its Q4 earnings.
The company said it was focussed on strong investment in LTE 4G that would be generated from increasing data traffic from next-generation devices.
It reported an improved underlying profitability for the quarter, with its earnings before interest and tax jumping to 9.1 billion crowns up for 4.8 billion in the same quarter a year ago.
Its recent push for more business in Europe affected increasing profit, but it is thought the company will recover as long-term projects near completion, and it secures vital business in building infrastructure.
“We have gained market share (in Europe), which was the whole point and now we can upsell on that,” Hans Vestberg, chief executive at the company told Reuters. “We have had larger projects in the US which are a bit slower, as well as some coverage projects. On the other hand there are new markets coming up.”
Vestberg identified China and Russia as two new markets the company could increase its presence, but will be faced by stiff competition in China in particular, considering Huawei and ZTE’s presence in the country.
Ericsson is also expected to benefit from the imminent 4G roll-out in China, with spending on the network expected to reach approximately $16 billion in 2014.