Ericsson has posted solid top-line growth for its Q2 19, but the market has been frustrated by the gross margin. Short-term margin headwinds are expected to last in the subsequent quarter as Ericsson undertook an aggressive pricing strategy ahead of several other strategies. We, however, believe that this should not question the long-term strategy of the company, especially ahead of the incoming 5G cycle. Furthermore, since Ericsson was fairly valued, this might have magnified the reaction of
17 Jul 2019
Roller-coaster ahead of large scale 5G deployment
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Roller-coaster ahead of large scale 5G deployment
Telefonaktiebolaget LM Ericsson Class B (ERIBR:HEL) | 0 0 0.2% | Mkt Cap: 179,329m
- Published:
17 Jul 2019 -
Author:
Hugo Paternoster -
Pages:
3
Ericsson has posted solid top-line growth for its Q2 19, but the market has been frustrated by the gross margin. Short-term margin headwinds are expected to last in the subsequent quarter as Ericsson undertook an aggressive pricing strategy ahead of several other strategies. We, however, believe that this should not question the long-term strategy of the company, especially ahead of the incoming 5G cycle. Furthermore, since Ericsson was fairly valued, this might have magnified the reaction of