Ericsson is about to release earnings. Ponder this Bear Case Scenario and see if its a wrong number.
The nature of the industry is hyper-competitive and then some. Ericsson must keep beating off the competition. In the end no one really wins. After all who was the best buggy whip manufacturer?
Ericsson is so large globally rates of growth and shareholder return are correlated to GDP and macro-economic factors. Having said that most people on this planet still do not have access to decent telephone service either land line or wireless. By the way it’s going to be wireless.
Customers such as large telcos are consolidating. This means larger orders but less decision points. Consolidation works against the vendor. buying power just sucks.
Ericsson does have large and deep relationships with many telcos which are hard to penetrate.
George Gutowski writes from a caveat emptor perspective.