Welcome to our dedicated page for Ericsson news (Ticker: ERIC), a resource for investors and traders seeking the latest updates and insights on Ericsson stock.
Ericsson reports developments across mobile network infrastructure, cloud software and enterprise communications services. Company updates commonly cover 5G Core and radio access network deployments for communications service providers, quarterly financial reporting, annual general meeting actions, and capital-allocation matters.
News also includes activity from Vonage, Ericsson's wholly owned subsidiary within Business Area Global Communications Platform. Vonage updates focus on network APIs, communications APIs, CPaaS, CCaaS and UCaaS tools used by enterprises and developers to embed voice, video, messaging, customer engagement and automation into digital services.
Ericsson (NASDAQ: ERIC) has introduced three new 5G radio solutions aimed at enhancing urban connectivity as part of its Street Solutions portfolio. The new offerings include the Street Radio 4402, AIR 4435, and Street Macro 6705, designed to facilitate rapid deployment and integrate seamlessly into city environments. With over 360 million projected 5G subscriptions in North America by 2026, Ericsson emphasizes the importance of urban deployments for maximizing 5G user experience. These solutions address challenges like site permitting and capacity expansion in dense urban areas.
On July 19, 2021, Ericsson reported it has secured a 2% market share in China's 700MHz radio round for 5G network development, significantly down from the 11% share awarded in the earlier 2.6GHz CP2 round. This lower market share aligns with earlier guidance to investors and reflects ongoing competitive pressures. China Mobile is the first operator to grant awards in this round, and similar outcomes are anticipated from China Unicom and China Telecom. The reduction in market share follows the exclusion of Chinese vendors from Sweden's 5G auction, impacting Ericsson's competitive landscape.
Ericsson reported a 8% organic sales growth for Q2 2021 despite a SEK -2.5 b sales decline in Mainland China, with total reported sales of SEK 54.9 b. Gross margin improved to 43.4%, and EBIT excluding restructuring charges rose to SEK 5.8 b. The company gained market share in Networks, showing an 11% organic sales increase. However, Digital Services faced challenges, with a net income of SEK 3.9 b and cash flow before M&A of SEK 4.1 b. The outlook for the RAN market is optimistic, projecting 10% growth YoY.
Ericsson announced a significant multi-year agreement valued at $8.3 billion with Verizon to enhance the deployment of its 5G solutions across the U.S. This partnership focuses on expanding 5G Ultra Wideband coverage and improving network performance through technologies like Massive MIMO and Cloud RAN. Both companies anticipate that this collaboration will drive innovation and widespread adoption of 5G services for consumers and enterprises, reinforcing Ericsson's commitment to accelerating 5G build-out nationwide.
Ericsson and MIT announced a collaboration on two research projects aimed at developing next-generation mobile networks powered by AI and neuromorphic computing. The projects focus on cognitive networks to enhance data-driven operations and energy-efficient designs for connected devices that can harvest energy from radio signals. This partnership seeks to enable ultra-fast, low-latency mobile networks and support the growing Internet of Things (IoT) ecosystem. The research aims to tackle significant technical challenges in connecting trillions of sensors and devices with greater efficiency.
Ericsson will release its financial report for the second quarter of 2021 on July 16, 2021, at approximately 7:00 AM CEST. A live video webcast with comments from President and CEO Börje Ekholm and CFO Carl Mellander will be held at 9:00 AM CEST. The financial report will be accessible on their website following the release.
Analysts and investors can participate via phone or view the webcast on-demand post-event.
The 5G Open Innovation Lab announced new partnerships with Accenture and Avanade as Founding Partners, while Ericsson and Spirent Communications join as Corporate Partners. This expansion aims to enhance the Lab's technical capabilities and support for its 47 startups. Accenture will focus on monetization of 5G solutions, while Avanade will advance edge computing. Ericsson will collaborate on innovative services for manufacturing and utilities, leveraging AI and IoT. Spirent will provide automated testing solutions for 5G. The Lab continues to drive innovation in 5G technologies.
Ericsson forecasts that 5G mobile subscriptions will surpass 580 million by the end of 2021, growing at a rate of about 1 million daily. The Ericsson Mobility Report highlights significant regional disparities, with China, North America, and the GCC leading in adoption, while Europe lags behind. By 2026, 5G subscriptions are expected to reach 3.5 billion, driven by affordable devices and economic recovery post-COVID-19. The report emphasizes the role of 5G in digitalization and projects massive IoT connections to rise significantly.
Ericsson and Anterix are partnering to enhance private network models for utilities in the U.S. The FCC has certified the Ericsson Radio 2212/2012 for use in the 900MHz spectrum, supporting utilities' shift towards more secure and flexible infrastructures. This collaboration aligns with the global trend of digitizing operations to address rising cyber threats. Ericsson has experience with both large and small utilities in North America, facilitating a transition to 4G/LTE with a pathway to 5G.
Ericsson (NASDAQ: ERIC) has launched Ericsson Private 5G, aiming to enhance 4G LTE and 5G connectivity for industries such as manufacturing, mining, and utilities. The solution ensures secure, cloud-based network management with quick installation and scalability to meet various business needs. By integrating IT/OT systems, companies can optimize productivity and safety through innovative applications, including real-time automation and augmented reality. This launch builds on Ericsson's existing 4G/5G deployments, leveraging insights from past projects for improved performance.