Ericsson Q1 Sales Dip as Telcos Slash Capex, But Margins and U.S. Growth Offer Silver Lining

Ericsson reported a notable slide in first-quarter 2025 sales, with revenues in Southeast Asia, Oceania, and India plunging 17% year-on-year to 7.2 billion Swedish crowns (about ₹6,342 crore). The decline is largely attributed to Indian telecom giants Reliance Jio and Bharti Airtel normalizing their network investments after a period of aggressive 5G rollouts. This marks a sharp reversal from the previous year, when both companies drove a surge in equipment demand. With 5G deployments now largely complete, Indian telcos are focusing on monetizing their networks rather than expanding them further.

 

Key Highlights:

While the mobile networks business faces headwinds from reduced capex in key regions, Ericsson remains optimistic about enterprise sector stabilization and continued technology leadership.

 

Source: Economic Times, Reuters, TelecomTV