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Telecommunications equipment industry

Ericsson: Company Analysis and Market Outlook

Strategic Insights

— 1 min read

Ericsson, a leading global supplier of telecommunications equipment and network infrastructure services, has been capitalizing on its large installed base and strong research and development facilities to consolidate its position. With a 26.3% share in the mobile infrastructure market, Ericsson generated revenues of US$20.31 billion in FY05, a 13% increase over 2004. The company's focus on emerging markets, such as China and India, will drive growth in the wireless infrastructure equipment market.

Key Takeaways:

  • Ericsson has a significant market share of 26.3% in the mobile infrastructure market.
  • The company generated revenues of US$20.31 billion in FY05, a 13% increase over 2004.
  • Ericsson's focus on emerging markets, such as China and India, will drive growth in the wireless infrastructure equipment market.
  • The mobile subscriber base in emerging markets is expected to account for 76% of the global mobile subscriber base by 2010.
  • Ericsson's SWOT analysis reveals strengths in research and development, a large installed base, and strong financial performance.
  • The company's weaknesses include a high reliance on traditional voice services and a need to improve its gross profit margin.

Statistics:

  • Ericsson's revenue growth rate: 13% (FY05 over FY04)
  • Ericsson's market share: 26.3% (mobile infrastructure market)
  • Expected global mobile subscriber base in emerging markets by 2010: 76%
  • Ericsson's revenues in FY05: US$20.31 billion
  • Ericsson's gross profit margin in FY05: down due to rise in services contribution

Sources:

  • Research and Markets (http://www.researchandmarkets.com/reports/c47040)
  • Ericsson Annual Report (FY05)
  • IT Deployment and Role section of Cisco Systems' website

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