The Economist – Hans free

Ericsson claims that close to half its sales come from services (though much comes from installing networks). It spends plenty on R&D. But its innovations have brought too few benefits. The firm’s shares have flatlined for most of a decade. Bengt Nordstrom, an analyst at Northstream, a telecoms consulting firm, blames cautious leadership by what he calls “general practitioner” bosses. Ericsson should now pick a leader more inspired by technical or digital matters, and thus better placed to meet competition from Google and other new rivals. The challenge for Mr Vestberg’s successor is not only to cut costs, but to find a new purpose. If Ericsson cannot, worries Mr Nordstrom, the company’s continued existence could soon come into question.

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Next read - Ericsson CEO resigns after sustained market struggles

The diversification away from core telecoms services has been one Vestberg revealed to in July 2015; as he explained how Ericsson was planning on a shift in strategic direction towards ICT, M2M services and multimedia. Bengt Nordstrom, CEO of analyst firm Northstream, says Ericsson missed out on the booming era for mobile broadband rollout, [...]
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