New Delhi: Swedish telecoms gear maker Ericsson has reported a 44% on-year fall in sales in the second quarter of calendar 2024 in market area Southeast Asia, Oceania and India, primarily due to a moderation in network capex spends by India’s top two telcos, Bharti Airtel and Reliance Jio, post-completion of their pan-India 5G rollouts.Ericsson’s sales in the Southeast Asia, Oceania and India market area plunged to 7.7 billion crowns (₹6,116 crore approx) in Q2 2024, from 13.8 billion crowns (₹10,961 crore) in the year-ago period. Sequentially, the vendor’s net sales in this region was down 10%.
“Sales decreased by -44% YoY. Networks sales declined primarily in India as investment levels have normalised after a record year in 2023,” Ericsson said in its earnings report Friday.
Borje Ekholm, president and CEO of Ericsson, said market conditions would “remain challenging this year,” as the pace of India investments slowed, though he expects the Swedish gear maker’s sales to benefit during the second half from contract deliveries in North America. The slowdown in spending on 5G equipment by India’s largest telcos Jio and Airtel has been weighing down on Ericsson and its Finnish rival Nokia, after the record pace of deployments of fifth-generation networks last year. Consequently, both vendors have slashed thousands of jobs in an attempt to save costs.
(You can now subscribe to our Economic Times WhatsApp channel)
Source link : https://m.economictimes.com/industry/telecom/telecom-news/ericssons-se-asia-oceania-india-sales-fall-44-yoy/amp_articleshow/111697386.cms
Author :
Publish date : 2024-07-12 14:09:48
Copyright for syndicated content belongs to the linked Source.