Ericsson share price

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish multinational networking and telecommunications company headquartered in Stockholm. A leading force in the industry, Ericsson provides infrastructure, software, and services in information and communications technology for telecommunications service providers and enterprises. Their offerings encompass a wide range of solutions, including 3G, 4G, and 5G equipment, as well as Internet Protocol (IP) and optical transport systems. With a global reach, Ericsson employs approximately 100,000 people and operates in over 180 countries. The company boasts a robust patent portfolio, holding over 57,000 granted patents.

Ericsson has played a pivotal role in the evolution of the telecommunications industry and stands as a prominent leader in 5G technology. Founded in 1876 by Lars Magnus Ericsson, the company is jointly controlled by the Wallenberg family through their holding company Investor AB and the universal bank Handelsbanken through its investment company Industrivärden. The Wallenbergs and Handelsbanken gained control of Ericsson, acquiring voting-strong A-shares, following the collapse of the Kreuger empire in the early 1930s.

Ericsson is also credited with the invention of Bluetooth technology.

Lars Magnus Ericsson's journey with telephones began in his youth as an instrument maker. He worked for a company that produced telegraph equipment for the Swedish government agency, Telegrafverket. In 1876, at the age of 30, he established a telegraph repair shop with the assistance of his friend Carl Johan Andersson in central Stockholm, where he also repaired foreign-made telephones. By 1878, Ericsson had started manufacturing and selling his own telephone equipment. While his telephones weren't technically groundbreaking, in the same year, he agreed to supply telephones and switchboards to Sweden's first telecommunications operating company, Stockholms Allmänna Telefonaktiebolag.

Expansion - International

Ericsson's international expansion began in the late 1890s as the Swedish market neared saturation. The company established agents in several countries, including the UK and Russia, where factories were later built to secure local contracts and increase production beyond the capacity of the Swedish facility. The UK's National Telephone Company became a major customer, accounting for 28% of Ericsson's sales by 1897. Growth in Sweden also encouraged adoption of Ericsson telephones in other Nordic countries.

Ericsson's products reached Australia and New Zealand, becoming the company's largest non-European markets by the late 1890s. Mass production techniques were in full swing, leading to a more functional design for telephones, with less ornate detailing.

Despite its success elsewhere, Ericsson struggled to make significant inroads into the U.S. market. AT&T's Western Electric Company, Kellogg, and Automatic Electric dominated the market, forcing Ericsson to eventually sell its U.S. assets. However, sales in Mexico led to expansion in South American countries. Significant sales were also generated in South Africa and China.

With the company established as a multinational enterprise, Lars Ericsson stepped down from the company in 1901.

Ericsson initially focused on manual exchange designs, overlooking the rise of automatic telephony in the United States. Their first dial telephone was introduced in 1921, but early automatic switching systems saw slow adoption until their performance was proven globally. Telephones from this era featured a simplified design and finish, with many early automatic desk phones in Ericsson's catalogs resembling magneto styles, incorporating a dial on the front and necessary electronic modifications. Distinctive decals adorned the cases.

World War I, the subsequent Great Depression, and the loss of Russian assets following the Revolution hampered the company's growth, reducing sales to other countries by about half.

The acquisition of other telecommunications companies strained Ericsson's finances. In 1925, Karl Fredric Wincrantz gained control by acquiring a majority of the company's shares, supported financially by Ivar Kreuger, an international financier. The company was renamed Telefonaktiebolaget L M Ericsson. Kreuger's interest in the company grew, as he was a major shareholder in Wincrantz's holding companies.

Ericsson faced bankruptcy and closure, but was saved by banks, including Stockholms Enskilda Bank (now Skandinaviska Enskilda Banken) and other Swedish investment banks controlled by the Wallenberg family, alongside some Swedish government support. Marcus Wallenberg Jr. negotiated a deal with several Swedish banks to financially rebuild Ericsson. The banks gradually increased their ownership of LM Ericsson "A" shares, while International Telephone & Telegraph (ITT) remained the largest shareholder. In 1960, the Wallenberg family purchased ITT's shares in Ericsson, gaining control of the company.

The Ericsson DBH1001 (1931), designed by Jean Heiberg, was the first combined telephone set with a Bakelite housing and handset. The Ericsson DBH15 telephone, a successor to the DBH 1001, was redesigned in 1947 by Gerard Kiljan.

During the 1920s and 1930s, governments worldwide restructured and stabilized their telephone markets. Fragmented town-by-town systems, previously operated by small, private companies, were consolidated and offered for lease to a single company. Ericsson secured several of these leases, resulting in further equipment sales to expanding networks. Nearly one-third of Ericsson's sales were generated through its telephone operating companies.

Ericsson has a long history of innovation in the telecommunications industry, dating back to 1956 when it introduced the world's first fully automatic mobile telephone system, MTA. The company continued to make significant contributions, releasing one of the world's first hands-free speaker telephones in the 1960s and the Ericofon in 1954. Ericsson's crossbar switching equipment was widely used by telephone administrations globally. In 1983, Ericsson introduced the ERIPAX suite of network products and services, further solidifying its position in the telecommunications landscape.

The emergence of the internet in the 1990s presented new opportunities for Ericsson. While initially perceived as slow to adapt to the internet's potential, the company established an internet project called Infocom Systems in 1995 to capitalize on the convergence of fixed-line telecom and IT. Ericsson's CEO, Lars Ramqvist, stated in the 1996 annual report that the company would expand its operations in all business areas, including mobile telephones, mobile systems, and Infocom Systems, to cater to customer service and internet protocol (IP) access.

The growth of GSM, which became the de facto global standard, along with Ericsson's other mobile standards like D-AMPS and PDC, propelled the company to an estimated 40% share of the world's mobile market by the start of 1997, with around 54 million subscribers. Additionally, there were approximately 188 million AXE lines in place or on order in 117 countries.

In the 1990s, telecom and chip companies collaborated to provide internet access over mobile telephones. Early versions like Wireless Application Protocol (WAP) utilized packet data over the existing GSM network, known as GPRS (General Packet Radio Service). However, these 2.5G services were rudimentary and did not achieve widespread mass-market success.

The International Telecommunication Union (ITU) developed specifications for a 3G mobile service, encompassing several technologies. Ericsson strongly advocated for the WCDMA (wideband CDMA) form based on the GSM standard and commenced testing in 1996. Japanese operator NTT Docomo partnered with Ericsson and Nokia, who collaborated in 1997 to support WCDMA over rival standards. DoCoMo became the first operator with a live 3G network, utilizing its own version of WCDMA called FOMA.

Ericsson played a major role in developing the WCDMA version of GSM, while US-based chip developer Qualcomm promoted the alternative system CDMA2000, building on the popularity of CDMA in the US market. This led to a patent infringement lawsuit that was resolved in March 1999. The companies agreed to pay each other royalties for the use of their respective technologies, and Ericsson acquired Qualcomm's wireless infrastructure business and some R&D resources.

In March 2001, Ericsson issued a profit warning. Over the following year, sales to operators halved, and mobile telephones became a burden for the company. The company's telephones unit incurred a loss of SEK 24 billion in 2000. A fire at a Philips chip factory in New Mexico in March 2000 severely disrupted Ericsson's phone production, further hindering its mobile phone aspirations. In October 2001, the mobile phone business was spun off into a joint venture with Sony, forming Sony Ericsson Mobile Communications.

Ericsson implemented several rounds of restructuring, refinancing, and job cuts. Staff numbers decreased from 107,000 to 85,000 in 2001, followed by a further reduction of 20,000 in 2002 and 11,000 in 2003. A new rights issue raised SEK 30 billion to keep the company afloat. Ericsson's survival coincided with the growth of mobile internet. With record profits, the company emerged in a stronger position than many of its competitors.

Ericsson experienced significant growth from 2003 to 2018, coinciding with the rise of full mobile internet access. Following the introduction of 3G services in 2003, individuals began utilizing their mobile phones to access the internet. Ericsson actively contributed to the development and deployment of 3G technologies, enhancing WCDMA and introducing IMS and HSPA. HSPA, initially deployed as HSDPA, marked the world's first mobile broadband, expanding from initial test calls in the US in 2005 to 59 commercial networks by 2006.

In 2016, Hans Vestberg stepped down as CEO after six years, with Jan Frykhammar serving as interim CEO. Börje Ekholm assumed the role of CEO in 2017. Ericsson settled a potential civil liability in 2018, agreeing to pay $145,893 for an apparent violation of the International Emergency Economic Powers Act and the Sudanese Sanctions Regulations.

Ericsson has been actively involved in acquisitions and collaborations throughout its history. In the early 2000s, Ericsson participated in the Wireless Strategic Initiative alongside other European telecommunications suppliers to develop advanced wireless communication systems. The company also formed a partnership with Microsoft, culminating in a joint venture that later evolved into a licensing agreement. Ericsson established a mobile phone manufacturing joint venture with Sony in 2001, eventually selling its stake in 2012.

The telecommunications sector experienced challenges in 2001, leading to job losses and significant restructuring. Ericsson, along with other major players, reduced its workforce. The company acquired the remaining shares of EHPT from Hewlett-Packard in 2001 and outsourced its IT operations to HP in 2003. Further acquisitions included Marconi Company in 2005, Ericsson Microwave Systems (sold to Saab AB in 2006), Redback Networks and Entrisphere in 2007, LHS in 2007, Tandberg Television in 2008, Nortel's carrier networks division in 2009, inCode's Strategy and Technology Group, LG-Nortel, Optimi Corporation, and Pride in 2010, Guangdong Nortel Telecommunication Equipment Company, Nortel's Multiservice Switch business in 2011, Telcordia Technologies in 2012, Technicolor's broadcast-services division and BelAir Networks in 2012, Red Bee Media in 2014, Microsoft's Mediaroom business in 2014, Envivio in 2015, Ericpol in 2016, and Placecast in 2018. The company also sold its enterprise PBX division to Aastra Technologies in 2008.

In 2017, Ericsson explored the sale of its media businesses, ultimately selling a majority stake in its Media Solution division to One Equity Partners. The company acquired Cradlepoint in 2020 and Vonage in 2021. Ericsson has continued to expand its partnerships, notably announcing a collaboration with MTN Group in 2024 to enhance mobile financial services in Africa.

Ericsson is a leading provider of technology and services for telecommunications operators worldwide. The company's core business encompasses research and development, network systems and software development, and operational support for telecom service providers. Ericsson offers comprehensive end-to-end solutions for all major mobile communication standards, structured around three primary business units: Networks, Digital Services, and Managed Services.

The Networks division is responsible for developing and deploying network infrastructure for mobile and fixed connections, encompassing a wide range of products, including radio base stations, radio network controllers, mobile switching centers, and service application nodes. This division has played a crucial role in the evolution of 2G, 3G, 4G/LTE, and 5G technologies, driving the transition towards all-IP networks. Beyond the latest technologies, Ericsson continues to support older standards like GSM, WCDMA, and CDMA, while also providing solutions for microwave transport, IP networks, fixed-access services, mobile broadband modules, and various levels of fixed broadband access.

Ericsson's Digital Services unit focuses on providing core networks, Operations Support Systems (OSS) for network management and analytics, and Business Support Systems (BSS) for billing and mediation. This unit also includes an m-Commerce offering that facilitates collaborations between service providers, financial institutions, and intermediaries. Notable m-commerce deals have been announced with Western Union and African wireless carrier MTN.

The Managed Services unit operates in 180 countries, supplying a broad range of services, including managed services, systems integration, consulting, network rollout, design and optimization, broadcast services, learning services, and support. These services are delivered to customers across various industries, including television and media, public safety, and utilities. Ericsson claims to manage networks serving over 1 billion subscribers globally, and its customer networks support a total of more than 2.5 billion subscribers.

Previously, Ericsson's Broadcast Services unit was spun off into a joint venture called Red Bee Media. This independent entity specializes in the playout of live and pre-recorded television programs, encompassing commercial and public service broadcasting. Red Bee Media provides services like presentation continuity, trailers, and ancillary access services such as closed captions, audio description, and in-vision sign language interpreters. Additionally, their media management services encompass Managed Media Preparation and Managed Media Internet Delivery.

Sony Ericsson Mobile Communications AB, commonly known as Sony Ericsson, was a joint venture between Sony and Ericsson. This collaboration merged the pre-existing mobile phone operations of both companies. Sony Ericsson was responsible for the design and development, marketing, sales, distribution, and customer services for a range of products including mobile phones, accessories, and personal computer (PC) cards. In February 2012, Sony announced the completion of its full acquisition of Sony Ericsson. Following this acquisition, the company was renamed Sony Mobile Communications and relocated its headquarters from Sweden to Japan almost a year later.

Ericsson Mobile Phones: A History

Ericsson's mobile phone production was transferred to Sony Ericsson in 2001 as a joint venture with Sony. Here's a list of mobile phones marketed under the Ericsson brand:

Early Models:

• Ericsson GS88: A canceled model that coined the term "Smartphone."
• Ericsson GA628: Notable for its Z80 CPU.
• Ericsson SH888: The first mobile phone with wireless modem capabilities.
• Ericsson A1018: A dual-band phone, known for its ease of hacking.
• Ericsson A2618 & Ericsson A2628: Dual-band phones with graphical LCDs based on the PCF8548 I²C controller.
• Ericsson PF768 & Ericsson GF768: Models with a focus on functionality.
• Ericsson DH318: One of the earliest TDMA/AMPS phones in the USA.
• Ericsson GH388: A robust and popular model.

The T Series:

• Ericsson T10: A colorful and stylish phone.
• Ericsson T18: A business-oriented model with a flip design.
• Ericsson T28: Known for its slim design and use of lithium polymer batteries. It featured a graphical LCD based on the PCF8558 I²C controller.
• Ericsson T20s & Ericsson T29s: Similar to the T28, with the T29s adding WAP support
• Ericsson T29m: A pre-alpha prototype for the T39m.
• Ericsson T36m: A prototype for the T39m, announced in yellow and blue. It was never released due to the T39 M's launch.
• Ericsson T39: Similar to the T28 but with GPRS modem, Bluetooth, and triband capabilities.
• Ericsson T65 & Ericsson T66: Mid-range models with enhanced features.
• Ericsson T68m: The first Ericsson handset with a color display, later rebranded as Sony Ericsson T68i.

The R Series:

• Ericsson R250s Pro: A full dust and water-resistant phone.
• Ericsson R310s & Ericsson R320s: Models with refined designs and features.
• Ericsson R320s Titan: A limited edition with a titanium front.
• Ericsson R320s GPRS: A prototype for testing GPRS networks.
• Ericsson R360m: A pre-alpha prototype for the R520m.
• Ericsson R380: The first Ericsson phone to utilize the Symbian OS.
• Ericsson R520m: Similar to the T39 but in a candy bar form factor. It included features such as a built-in speakerphone and an optical proximity sensor.
• Ericsson R520m UMTS & Ericsson R520m SyncML: Prototypes for testing UMTS networks and SyncML implementation, respectively.
• Ericsson R580m: Announced in several press releases, it was intended to be a successor to the R380s with no external antenna and a color display.
• Ericsson R600: A flagship model with advanced capabilities.

Beyond Mobile Phones:

Ericsson Dialog: A line of landline phones.

Ericofon: A series of classic phones.

Ericsson Mobile Platforms: A division focusing on mobile platform technology, it merged with ST-NXP Wireless in 2009 to form a 50/50 joint venture. The venture was divested in 2013, with the remaining activities integrated into Ericsson Modems and STMicroelectronics.

Ericsson Enterprise: Founded in 1983, it provided communication systems and services for businesses and institutions. Its products included VoIP-based PBX, WLAN, and mobile intranet solutions. In 2008, Ericsson Enterprise was sold to Aastra.