Ericsson sees modest market growth until 2016 - Mobile World Live

Ericsson sees modest market growth until 2016

06 NOV 2013

Ericsson reckons the network equipment market will see only low single-digit growth rate until 2016.

Ahead of its Investor Day today (6 November), the Swedish equipment giant forecast 3-5 per cent CAGR for the “total network equipment market” between 20012 and 2016.

The company struck a more optimistic note for the telecoms services market, which is estimated to show a CAGR of 5-7 per cent over the same period.

And the market for support solutions is forecast to hit the heights with a CAGR of 9-11 per cent between now and 2016.

“Steady growth is expected across all areas with no major changes in figures for the main CAGR, compared with last year,” the firm said in a statement. However, the company will hope it can exceed the general growth rate for the market.

In addition, CEO Hans Vestberg (pictured) and CFO Jan Frykhammar will today elaborate on why sales came under pressure in the third quarter. Ericsson is keen to reiterate its belief the pressure on sales is due mainly to unfavourable currency movements, combined with lower activity in three large projects in North America and Japan.

Vestberg will also set out how the vendor aims to achieve profitable growth in 2014. Proposals will include monetising the investments the company has made in its existing European footprint.

It will also aim to get paid sooner: It wants to make continued improvements to shorten order-to-cash cycle time. Finally, it wants to evolve its infrastructure software model to fit an ICT environment.

“Looking at sales growth in a longer perspective, it is encouraging to see that we grew twice as fast as the market in 2010-2012, currency adjusted. This is proof that our strategy is effective and that we are delivering real value to our customers,” said Vestberg.

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Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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