Once again, the dip in sales performance across the Swedish equipment vendor was attributed primarily to a decline in its networks business.
For over a year now, Ericsson have been telling the tale that US operators would soon need to replenish inventories as they continue to invest in 5G. North America makes up 25% of Ericsson’s revenue.
But another quarter of falling sales indicates this recovery is still some way off.
North American sales were down 3% vs Q4 23 and 18% against Q1 23, but CEO Bjorn Ekholm expects a recovery in the US as its $14 billion AT&T contract kicks in in the second half.
Sales in Ericsson’s enterprise business stayed relatively consistent against Q1 23, but were down 11% against the previous quarter.
Its Cloud Software and Services business also dropped 33% against Q4 23, and dropped 3% for the year.
With revenues continue to fall, Ericsson has embarked on an efficiency drive to maintain its margins and appease investors. This has included cutting over 5,000 jobs.
