6.40 0.00 (0.00%)
After hours: 4:13PM EDT
|Bid||6.21 x 2400|
|Ask||7.00 x 300|
|Day's Range||6.38 - 6.53|
|52 Week Range||5.52 - 7.47|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.13 (1.91%)|
|1y Target Est||N/A|
At a recent event organized by Telia in Stockholm, Sweden, Ericsson (ERIC) teamed up with Intel (INTC) and Telia to demonstrate a unique augmented reality (or AR) case over a live 5G (fifth-generation) network. The demo offered a sneak peek into the future, showing how 5G networks can open up a new world of possibilities, such as the delivery of augmented instructions and X-ray vision of objects in real time.
India’s telecom (telecommunications) sector has witnessed a wave of consolidations over the past few years, resulting in the number of major network operators in the market dropping to four from eight. Amid tough competition and high costs of owning spectrum, telecom providers around the world have generally tried consolidations to survive.
How corporate fortunes can change. Five years ago, Ericsson was riding high as the world’s largest seller of telecoms equipment while Nokia was suffering under the weight of its struggling mobile handsets ...
Through actions and words, Ericsson (ERIC) is showing network operators that their future is bright with 5G (fifth-generation) technology. Many network operators around the world are already struggling with tough competition and rising expenses eating into their profits. Ericsson has tried to portray 5G as the potential answer to their struggles.
Solidium, the Finnish government’s investment fund, disclosed in mid-March that it had acquired a 3.3% stake in Nokia (NOK) at the start of 2018. Nokia, a maker of telecom (telecommunications) equipment, is Finland’s largest company. Its rival Ericsson (ERIC) also registered a fall in revenue in the year.
Ericsson’s (ERIC) Managed Services segment provides services and network optimization to telecommunications service providers. The key drivers for the Managed Services segment are the complexity of network systems and the high demand for improving customer experience and cost reduction. Ericsson estimates that this market will grow at a CAGR (compound annual growth rate) of 2%–4% between 2017 and 2020.
Ericsson’s (ERIC) Digital Services segment provides solutions to companies with a focus on digital transformation. It consists of services in the OSS (operations support systems) and BSS (business support systems) space, as well as across telecommunications core (packet core and communication), NFV (network function virtualization), and cloud infrastructure and application development. Peer companies in this space are Cisco Systems (CSCO), Nokia (NOK), Netcracker Technology, Huawei, and Amdocs.
Ericsson (ERIC) has four business segments: Networks, Digital Services, Managed Services, and Other. It has targeted total revenue of 190 billion–200 billion Swedish kroner in fiscal 2020. The Networks segment is expected to post revenue of 128 billion–134 billion Swedish kroner in 2020 and account for approximately 65% of total revenue.
Mobile networks have been focusing on individual customers through voice and SMS (short message service) in 2G (second generation) and Web browsing, video streaming, and high-speed Internet in 3G (third-generation) and 4G (fourth-generation) technology. The transition to 5G (fifth-generation) technology is expected to serve consumers as well as industries. Applications such as 4K and 8K video streaming VR (virtual reality) and AR (augmented reality) will mean a requirement for higher bandwidth, greater capacity, and increased security.
In the chart below, you can see that Ericsson’s (ERIC) operating margins have fallen significantly, from 11.4% in fiscal 2015 to less than 1% in fiscal 2017, driven by a fall in revenue. In the previous part of this series, we saw how Ericsson aims to improve its gross margin and operating margin in the near term and long term. Ericsson has targeted cost reductions of 10 billion Swedish kroner by the middle of fiscal 2018.
Ericsson (ERIC) has repeatedly stated that one of its primary targets is to expand its profit margins. It has a long-term operating margin target of 12%. In the short term, it aims to achieve gross margins between 37% and 39% with an operating margin of at least 10%.
Ericsson (ERIC) believes the global telecom (telecommunications) industry is a key driver of economic growth and innovation. According to Ericsson, there will be about 9.1 billion mobile subscriptions globally by 2023, which indicates an exponential penetration since mobile technology was introduced in the early 1990s. Ericsson aims to become a leaner organization in the future, which might allow it to better service the growing demands of telecom customers.
Ericsson (ERIC) and Dialog Axiata roll out the first commercial Massive IoT network in Southeast Asia that supports both Cat-M1 and NB-IoT technologies.
Forget steel and aluminum: The big battle between the U.S. and China is not tariffs, but the future of wireless technology. China’s scrappy smartphone vendors continue to take market share around the world, despite the dominance of Apple (AAPL) and Samsung Electronics (005930.South Korea). The wireless race has all the hyperbole of the 1960s contest between the U.S. and Soviet Union to put someone on the moon.
T-Mobile selects Ericsson (ERIC) to provide 5G radio access products for deployment of a nationwide 5G network in the United States.
HELSINKI (Reuters) - U.S. wireless carrier T-Mobile (TMUS.O) said on Tuesday it would start building next-generation 5G networks around the United States with the help of Nordic equipment vendors Ericsson ...