Telefonaktiebolaget LM Ericsson (publ) (Ericsson) provides mobile connectivity solutions to communications service providers, enterprises and the public sector.
Strategy
The company strategy is to creating value through mobile network innovation.
The company is entering an exciting era of accelerated digitalization, leveraging AI and cloud technology, with mobile connectivity as a key enabler. The company's strategy aims at increasing the value of mobile networks by building the best, high-pe...
Telefonaktiebolaget LM Ericsson (publ) (Ericsson) provides mobile connectivity solutions to communications service providers, enterprises and the public sector.
Strategy
The company strategy is to creating value through mobile network innovation.
The company is entering an exciting era of accelerated digitalization, leveraging AI and cloud technology, with mobile connectivity as a key enabler. The company's strategy aims at increasing the value of mobile networks by building the best, high-performing, and programmable networks, enabling its customers to offer differentiated connectivity, and expose new advanced network capabilities to enterprises and developers.
Ericsson’s strategy is to lead the next wave of mobile connectivity. This new era will require high-performing and programmable networks that can deliver differentiated connectivity, targeted to specific consumer and industry needs. The company is expanding into new industry use cases to drive growth, building on its leadership in mobile networks.
Segments
The company’s portfolio spans the following segments: Networks, Cloud Software and Services and Enterprise (which includes Global Communications Platform, Wireless Wide-Area Networks and private cellular networks). In addition, segment Other includes media businesses as well as other non-allocated business.
Networks
Networks offerings include hardware and software solutions and related services, enabling communications service providers to evolve to new 5G capabilities. The portfolio includes Radio Access Network (RAN), RAN Compute, Transport, Antenna products and a complete service portfolio.
Cloud Software and Services
Cloud Software and Services provides solutions that equip communications service providers to enhance their business agility, service experience, and operational efficiency. The portfolio includes Core Networks, Business and Operations Support Systems, Network Management, Cognitive Network Solutions and Managed Networks Services.
Enterprise
Enterprise provides advanced connectivity solutions for businesses to accelerate digitalization, drive innovation and optimize processes. The portfolio includes Global Communications Platform, Wireless Wide-Area Networks (WWAN) and private cellular networks.
Other
Segment Other comprises media businesses as well as other non-allocated businesses.
Market areas
The market areas are the company’s primary sales channel with the responsibility to sell and deliver Mobile Networks customer solutions.
The company operates worldwide and reports its operations divided into five geographical market areas: North America; Europe and Latin America; South East Asia, Oceania and India; North East Asia and Middle East and Africa.
Segment Enterprise has a multi-channel go-to-market distribution model. Sales from segment Enterprise and Other, and the IPR licensing revenues are externally reported as market area Other.
Major customers
The company derives most of its sales from large, multi-year agreements with a limited number of significant customers. Out of a customer base of more than 500 customers, mainly consisting of communications service providers, the 10 largest customers accounted for 44% of net sales. These customers were reported under segments Networks and Cloud Software and Services.
Seasonality
Group sales, income and cash flow from operations vary between quarters and are generally lowest in the first quarter of the year and highest in the fourth quarter (year ended December 2024). This is mainly a result of the seasonal purchase patterns of the company’s customers.
Research and Development
In 2024 R&D expenses amounted to SEK –53.5 (–50.7) billion.
History
Telefonaktiebolaget LM Ericsson (publ) was founded in 1876. The company was incorporated in 1918.