WCDMA sales does not look good for Ericsson

April 30, 2003

Ericsson doesn't expect equipment for WCDMA mobile networks to account for a growing percentage of its overall systems revenue through the remainder of the year, Chief Financial Officer Karl-Henrik Sundstroem said.

Speaking to analysts after Ericsson released first-quarter financial results, Sundstroem said sales of WCDMA gear should account for about 12% of its mobile systems sales this year, with the share growing to about a third of mobile systems sales by 2005. WCDMA sales accounted for around 12% of Ericsson's systems sales in the first quarter of 2003.

WCDMA is the 3G standard being used in Europe.

Orders for the GSM/WCDMA track declined 28% from last year for Ericsson.

"Despite the near-term uncertainties, the longer-term market opportunities are obvious and I am convinced that the convenience of mobility and the benefits of 3G will continue to attract new customers and increase usage," says Carl-Henric Svanberg, President and CEO of Ericsson.

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WCDMA sales does not look good for Ericsson

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