Ericsson falls sharply

"For the full year 2011, we had a strong sales growth and an increase in net income. In the fourth quarter, however, we saw weaker development in Networks, as well as an expected gross margin impact from a changed business mix with more coverage projects, modernization projects in Europe, and a higher services share," said Hans Vestberg, President and CEO of Ericsson. One thing that has burdened Ericsson during the winter is losses from their joint-ventures. Sony Ericsson fell badly in its last quarterly report and ST-Ericsson will continue to cost money. Some concerns also remain for the next few quarters: ”We believe that the industry fundamentals for longer-term positive development remain solid. Short-term, we expect operators to continue to be cautious with spending, reflecting factors such as macro economic and political uncertainty”.