The Swedish mobile network device manufacturer Ericsson has increased its lead over the Finnish-German telecoms joint venture Nokia Siemens Networks, based on a comparison of the companies’ third quarter results.
Ericsson’s net profit excluding non-recurring items exceeded the stock market expectations, whereas Nokia’s network arm’s result remained clearly below of what was anticipated.
Ericsson’s profitability was enhanced especially by lowering the cost of business activities, which was primarily carried out by reducing the number of jobs.
Nokia Siemens Network’s profitability was weakened by the shortage of components, which was greatest in products with the highest margins. In the important emerging Chinese market the company’s net sales were reduced by seven per cent year-on-year.
When comparing the world’s two largest mobile network solutions providers, the scale has tipped in favour of Ericsson for some years now.
In its business activities Ericsson is able to utilise the size advantage in the same manner as Nokia is doing in mobile handset sales.
One correction - Nokia Siemens Networks net sales INCREASED by seven percent year on year
ReplyDeleteNSN seems to lead also in number of 3G and commercial LTE deals
ReplyDeleteNSN the second?
ReplyDeleteAs far as I know, Huawei is the second provider. Maybe not if you only count the mobile networks, but if you consider Transmission and other devices, then you should put Huawei in the second place.
http://www.rethink-wireless.com/2010/02/24/ericsson-widens-market-lead-nsn-huawei.htm