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

To: Jim Oravetz who wrote (4113)	5/23/2000 8:39:00 AM
From: Teddy	Respond to of 5390

SalomonSmithBarney came out with another one of their nice reports on Ericsson the other day. Here's part of it: 05/18/00 Ericsson (LM) Telephone Company (ERICY $21.68,1-M,Tgt $30.00) --OPINION:------------------------------------------------------------------ ERICSSON HOSTS UPBEAT ANALYST MEETING IN NY. On Wednesday, Ericsson hosted an upbeat analyst meeting for investors in New York led by President Kurt Hellstrom and CFO Sten Fornell. Kurt highlighted the strong wireless industry fundamentals as well as Ericsson's position of strength in the wireless infrastructure business and its intent to lead the mobile Internet revolution. Close to 80% of Ericsson's business is wireless-related now with Mobile Systems accounting for 53% of sales and Consumer Products (wireless terminals) accounting for 25%. STRONG INDUSTRY FUNDAMENTALS CONTINUE. As a testament to the overall strength of the mobile industry, Ericsson presented several positive forecasts. (1) The company now estimates the industry will reach 1 billion subscribers in 2002 versus its earlier forecast of 2003. (2) Also, 2002 is likely to be the crossover year when there will be more mobile subscribers than fixed subscribers with mobile users surpassing the 1 billion mark. (3) The year 2003 is forecast to be the crossover year when there will be more mobile Internet users than PC Internet users when mobile Internet users reach the half billion mark. MOBILE SYSTEMS CONTINUES AS KEY TOP LINE DRIVER. Mobile systems sales now account for 53% of total company sales. In the March quarter, sales were up 49% while orders were up 86%. The mobile Internet remains Ericsson's strategic focus, and the company provides the full range of products to support the mobile Internet including mobile systems, mobile terminals, applications and services. The company has launched the R280 mobile phone to support AT&T Wireless' CDPD (data) offering, which was also announced on Wednesday. To date, Ericsson has won 39 GPRS contracts or more than 50% of the market. We believe 3G wireless is the next huge opportunity for Ericsson. Ericsson is the prime supplier on 4 out of 5 3G contracts (Vodafone/UK, Japan Telecom/Japan, Finnish 2G Ltd/Finland and Alands Mobiltelefon/Finland). It is also supplier to NTT DoCoMo, which plans to be the first 3G operator to launch commercial service in April 2001.