Ericsson, the world’s biggest maker of mobile phone exchange equipment, said its profit halved in the fourth quarter of 2011.
Telecoms operators invested heavily through most of last year to upgrade their networks for surging data traffic from smartphones and tablet computers.
So some slowdown had been anticipated, particularly in the US, but Ericsson’s figures were worse than expected and its shares slumped.
Ericsson forecast network operators would remain cautious on spending in the months ahead.
Ericsson’s key network unit saw sales fall nine percent year-on-year. The effects were most felt in the United States and Russia.
At the same time, the impact of lower margin contracts in Europe continued to press on Ericsson’s profitability.
“Short-term, we expect operators to continue to be cautious with spending, reflecting factors such as macro economic and political uncertainty,” said Ericsson chief executive Hans Vestberg.
“We will continue to execute on our strategy which means that the business mix, with more coverage and network modernisation projects than capacity projects, will prevail short-term,” Vestberg added.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2NASA discovers evidence of “liquid briny water” flowing on Mars
- 3Latest News Bulletin
- 4At least 220 dead in stampede outside Mecca, Saudi Arabia reports
- 5Why aren’t rich Gulf states welcoming Syrian refugees…or are they?
- 6[Live] All the Rugby World Cup news in one place
- 7International news | euronews, latest international news
- 8International breaking news | euronews online world breaking news in video
- 9Why aren’t rich Gulf states welcoming Syrian refugees… or are they?
- 10Syrian refugee tripped by shamed camera woman is named
- 11Spain: Catalan President faces ‘civil disobedience’ charges over breakaway vote
- 12Banzai back in the vocabulary as Japan passes law allowing combat deployments
- 13Exclusive: shipwatchers chart Russian hardware heading into Med
- 14Which European countries offer the most social benefits to migrants?
- 15[Live] Catalonia: separatists heading for clear win in crucial elections
- 16Israel agents ‘incite’ stone-throwing in West Bank
- 17Fifa suspends Blatter, Platini and Valcke
- 18Kicked down in Hungary, saved by Spain
- 19Catalan president Artur Mas charged with organising illegal independence referendum
- 20Hungary’s army can shoot rubber bullets and tear gas at refugees
Wires > Business
- 08:29 CET Worldpay valued at £4.8 billion in London listing
- 08:29 CET China economic picture remains cloudy as September export fall…
- 08:08 CET Oil up on bargain-hunting, but gains capped by stockpile forecast
- 07:15 CET Insight – U.S. firms blur investment picture by going ‘lightweight’
- 07:07 CET Former Anglo Irish Bank CEO to face extradition hearing in Boston
- 05:28 CET ECB Mersch says too early to say if inflation path will be derailed
- 04:17 CET Japan’s Aso – economy clearly in recovery phase
- 04:07 CET Barclays set to name former JPMorgan banker Staley as new CEO