For the sake of our portfolios, I hope that new contract we may land is with Nokia instead of ERICY:
<<Ericsson Second-Quarter Net Rises 21%; Shares Plunge
Stockholm, July 27 (Bloomberg) -- Ericsson AB, the world's No. 3 cellular phone maker, said second-quarter net income rose 21 percent, helped by strong sales in China, although shares plunged as much as 12 percent as global mobile phone sales stagnated...
While Ericsson mobile phone sales increased a mere percent in the second quarter, Finnish rival Nokia Oyj reported last week sales in its mobile phone unit -- claiming a fifth of the global market -- rose 50 percent as it recently unveiled a slew of new sleek, small phones.
''The future looks shaky for Ericsson -- Nokia is No. 1 and the share movements show it,'' said Andreas Strindholm, a trader at Den norske Bank. Nokia shares are up 3 percent in Helsinki.
In China, Ericsson's single largest market, total sales rose 62 percent in the first half. Still, in the rest of Asia, sales fell 27 percent.
''The Chinese market continues to show strong growth,'' said Chief Executive Sven-Christer Nilsson, in a statement...
Ericsson and Nokia have traditionally reported better profits in recent quarters than U.S. rival and the world's largest mobile phone maker Motorola Inc., which posted a 98 percent decline in second quarter profit two weeks ago. The Nordic companies don't produce semiconductors or pagers, allowing them to benefit more from a global expansion in mobile telecommunications.
''Growth in mobile-phone operations wasn't as high as expected,'' especially after Nokia's report, said Joakim Gahm, head of equity trading at Oehman Fondkommission, who doesn't recommend holding Ericsson in the next few weeks. ''Nokia has outclassed Ericsson.'' >>
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I know, I know -- good news here about general health of Chinese market and ANY absolute increase in LCD orders would be very nice, but it would also be nice to have an important client that people actually feel optimistic about.
--Ariella |
