Demand for Smartphone infrastructure drives Ericsson profit

Ericsson - Spectacular Growth in Bottomline

Ericsson – Spectacular Growth in Bottomline

Strong consumer demand for Smartphones like Apple’s iPhone has helped telecom giant Ericsson post strong results in Q4, 2010. Sales were up at 62.8 billion Kronor (£6 billion, $9.6 billion) for the quarter, a jump of 8 percent over same period, last year.

Operators around the world bought more broadband infrastructure equipment from Ericsson to cope with heavy data traffic required by such devices.

Ericsson CEO Hans Vestberg said the sales rise was “mainly driven by a strong development in mobile broadband”.

Net profit soared to 4.3 billion Swedish Kronor, a jump of nearly 600 percent from 725 million Kronor recorded in Q4, 2009.

Complimenting the spectacular growth of the bottomline, Greger Johansson – an analyst at Redeye said: “It is the first time in many quarters where you can see growth in the company, which one almost couldn’t have expected … that is important”.

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