Ericsson AB issues a cautionary outlook for 2024, due to a persistent market decline, particularly outside China. The warning is caused by what CEO, Börje Ekholm, identifies as “unsustainably low” operator investments.
Ericsson’s Q4 2023 saw a 9 percent drop in adjusted earnings to 7.4 billion SEK, surpassing analyst projections and signaling challenges in the telecom sector. Shares of Ericsson dropped by 4.2 percent, settling at 61.05 SEK, reflecting a broader industry trend.
Northeast Asia sales rose by 9 percent, constituting 13 percent of the total revenue, but the Swedish company anticipates a further contraction in markets outside China.
“We expect the market outside China to further decline, with similar uncertainties as experienced in 2023,” Ekholm said in a recent statement.
Source: Bloomberg
