Electronics Production | October 17, 2007
Ericsson’s suppliers: “Rough Times Ahead”
Many of Ericsson’s suppliers are counting on a rougher future since Sweden based telecom giant Ericsson’s CEO Mr. Carl-Henric Svanberg yesterday issued a profit warning sending the stock price down almost 30 per cent.
The stock yesterday sent shock waves across the global telecommunication industry. "It will surely impact many suppliers of Ericsson. We still have in memory of how it went last time when Ericsson went down. Harder price pressures and severe demands for cost reductions”, Mr. Arne Forslund CEO of Sweden based EMS provider Note AB told local media di.se. Note’s turnover in the telecommunication business is about 30 per cent. Some of Note’s units are almost totally dedicated to manufacturing of Ericsson’s products. Despite this Note’s stock went up yesterday.