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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Robert New who wrote (3764)	10/22/1999 9:18:00 AM
From: tero kuittinen	Respond to of 5390

The network sales were pretty solid considering this is a problem year for China. Apparently Omnipoint just acquired 20 million pops in LA and Washington DC - Ericsson should have a shot at that build-up. I think they have already closed the first GPRS deal with OMPT and the first EDGE deal with the Canadian TDMA operator. Ericsson seems to be shouldering Motorola and Lucent off the North American GSM/TDMA data upgrade market. Most likely Hutchison will now start pouring more money into Voicestram/Omnipoint after the Mannesmann deal. The key Ericsson network customers in Latin America, Turkey and Eastern Europe are reporting pretty hot growth - Motorola's network sales outlook for 2000 is very problematic in comparison. Which leaves the handset unit. I don't buy the big turn-around story, but returning to 15% globally should be doable. The midrange and low-end models are still pretty clunky, but the high-end phones are looking good. Maybe that's just as well - if Ericsson can shift the focus to high-end, they don't need to become the volume champ. Let's see how fast they can work out the T28 component shortages, the demand is certainly there. Tero