In Q1 2025, Ericsson recorded sales of SEK 55 billion, showing an increase of 3 percent compared to SEK 53.3 billion in Q1 2024. However, sales were 25 percent lower than in Q4 2024, when the total reached SEK 72.9 billion.
The United States remained Ericsson’s largest market, accounting for 45 percent of net sales, up from 37 percent in Q1 2024 and 40 percent for the full year 2024.
Ericsson said India contributed 7 percent of net sales in Q1 2025, a decline from 10 percent in Q1 2024 and down from 6 percent for the full year 2024.
The United Kingdom maintained a steady contribution of 4 percent across Q1 2025, Q1 2024, and the full year 2024.
Japan also remained stable at 3 percent in Q1 2025 and Q1 2024, slightly down from 4 percent in the full year 2024. China contributed 3 percent in Q1 2025, compared to 4 percent in both Q1 2024 and the full year 2024.
Looking at regional performance, the Americas led with SEK 20.8 billion in Q1 2025, up sharply by 26 percent from SEK 16.4 billion in Q1 2024, though down from SEK 25.7 billion in Q4 2024.
Ericsson’s sales in Market Area Americas increased by 20 percent on an organic basis, with strong growth in North America partially offset by a decline in Latin America. In North America, network sales saw a significant boost, driven by earlier contract wins and increased investments from other customers, partly due to tariff-related uncertainty.
In Latin America, sales dropped due to ongoing intense competition and reduced customer network investments. During the quarter, it was also announced that AT&T, T-Mobile, and Verizon will launch advanced Network APIs for number verification and SIM swap in 2025 to enhance security and fraud prevention.
In Europe, the Middle East, and Africa, sales dropped to SEK 14.5 billion in Q1 2025 from SEK 15.3 billion in Q1 2024 and SEK 21.9 billion in Q4 2024, reflecting a decline of 5 percent.
In Q1 2025, sales in Market Area Europe, Middle East and Africa declined by 7 percent on an organic basis. In Europe, sales remained stable, supported by market share gains and ongoing network modernization efforts. However, sales in the Middle East fell as investment levels eased following recent 5G rollouts, and in Africa, sales decreased due to persistent macroeconomic challenges.
South East Asia, Oceania, and India saw a decrease in sales to SEK 7.2 billion in Q1 2025 from SEK 8.6 billion in Q1 2024, with a further decline from SEK 8.4 billion in Q4 2024, marking a 16 percent drop.
Ericsson’s sales in Market Area South East Asia, Oceania and India declined by 17 percent on an organic basis. The drop was mainly due to reduced network sales, as operator investment levels in India returned to more normalized levels. However, sales in Cloud Software and Services increased, driven by the timing of project deliveries. Reported sales were down 16 percent. Key developments included the announcement of the first programmable network in Asia-Pacific with Telstra, a core modernization agreement with One New Zealand, and a 5G Core partnership with Bharti Airtel.
North East Asia also saw a decline, with sales falling to SEK 3.2 billion in Q1 2025 from SEK 3.4 billion in Q1 2024 and SEK 7.1 billion in Q4 2024, a drop of 6 percent.
Ericsson’s sales in Market Area North East Asia declined by 8 percent on an organic basis. The decrease was driven by lower network sales, resulting from reduced customer investments in several leading 5G markets. Additionally, sales in Cloud Software and Services were down due to the timing of project deliveries. Reported sales declined by 6 percent.
Ericsson said IPR sales increased slightly to SEK 3.2 billion in Q1 2025 from SEK 3.1 billion in Q1 2024, though down from SEK 3.5 billion in Q4 2024, reflecting a 3 percent growth.
TelecomLead.com News Desk
