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Ericsson is a world-leading supplier of equipment for telecommunications
systems and related terminals. The Company produces advanced systems and products for
wired and mobile communications in public and private networks.
Ericsson had 100,774 employees at year-end 1997. Net sales amounted to SEK 167,740 million
and order bookings to SEK 179,770 million in 1997.
With its strong international presence, Ericsson has a unique knowledge of market
conditions in all parts of the world. Based on this knowledge and on the Company's high
expertise, Ericsson is developing telecommunications solutions for customers in more than
130 countries. In 1996, a large strategy study was completed. Entitled "2005 entering
the 21st Century," it constitutes the basis for Ericsson's future strategy:
"Ericsson's mission is to understand our customers' opportunities and needs and to provide communications
solutions better than any competitor. In doing this,
Ericsson can offer its shareholders a competitive return
on their investments."
The Company's history goes back to 1876, when Lars Magnus Ericsson opened a repair shop
for telegraph equipment. He soon realized that there was a need for improvements in the
telephones then available, and therefore began manufacturing them himself. In 1892,
Ericsson launched its first major international product - a table-top device with a
separate hand-held microphone. Since then, the Company has been one of theworld's leading
manufacturers of advanced telephone equipment, with a very large percentage of sales
outside Sweden.
Research and development:
Ericsson has always invested heavily in technical development. In recent years, its
R&D budget has exceeded 20 percent of sales. More than 18,000 Ericsson employees in 23
countries are active in research and development. In 1996, sek 22 billion was invested in
securing Ericsson's future position as a technological leader in the telecommunications
area.
The pace of development within telecommunications is so high today, that Ericsson's
product portfolio will be completely renewed within two years.
The Company's research is focused on products and systems that are a part of Ericsson's
core business. Ericsson's strategy in a number of important areas is to form joint
ventures with other leading companies. In the field of special components, which are of
strategic importance to the Company, Ericsson works in a far-reaching cooperative venture
with Texas Instruments. This cooperation gives Ericsson access to the most modern
microelectronics technology.
Comparable joint venture programs are being conducted with Hewlett Packard with respect to
the development of operating support systems. Ascom, Bang & Olufsen, Marconi,
Microsoft, Novell, Intel and IBM are examples of companies with which Ericsson is
cooperating in specific areas of technology.
Products:
Ericsson's production capabilities are spread throughout the world, with the emphasis on
Sweden and Europe. Its range of products is broader than that offered by any other
supplier of telecommunications equipment. The product portfolio contains the following
products, among others:
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AXE®
Digital exchange systems for wired and mobile networks
ETNA
Transport network products
TMOS®
Operating support systems for telecommunications networks
Radio base stations
Used in analog and digital mobile telephone systems
Radio access
Various solutions for wireless access to fixed telecom networks
Mobile telephones
Mobitex®
Systems and equipment for mobile data communications
EDACS
Digital system for private radio networks |
Consono®
Digital systems for business communications, cordless or via wired
business networks
BusinessPhone®
Small and medium-sized systems for business communications
Eripax®
Data network products
Eripower®
Power supplies for telecommunications equipment, computers and
other applications
MiniLink®
Microwave links
Giraffe®
Mobile air defense radar systems
EriEye®
Airborne tracking radar
Arthur®
Artillery-location radar |
Markets:
Ericsson has worldwide operations in more than 130 countries.
Five of the Company's ten largest markets are in Europe. Including Sweden, the European
market accounts for 50 percent of Ericsson's net sales. In 1996, the EU countries accounts
for 31 percent, of which Sweden's share was 10 percent.
Ericsson continued its expansion in North America during 1996. Sales of mobile phone
systems and mobile telephones were predominant in the US, which is Ericsson's largest
single market.
Latin America is a strong growth market. In 1996, sales continued to be favorable in this
traditionally large Ericsson market. Brazil is one of the Company's most important
markets.
Asia and the Pacific Rim are strong growth markets for Ericsson. China is the Company's
second largest single market, with favorable growth in both fixed and mobile networks.
Japan is also one of Ericsson's largest markets, mainly due to the success of digital
mobile networks there.
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