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ERICSSON SALES HIT BY TOUGHER COMPETITION
In the first article published on Ericsson’s results in FT, the paper writes that Ericsson posted an operating profit, excluding joint ventures and restructuring costs, of SEK4.5 billion (USD620 million). Sales fell by nine percent year on year, to SEK45.1 billion. Sales in the key network unit were down 14 percent year on year. “The market conditions we saw in the second half of 2009 prevailed in this quarter as well, with mixed operator investment behavior across regions and markets,” CEO Hans Vestberg said in a statement.

NOKIA FEELS PRICE PINCH
Nokia reported a net profit of EUR349 million (USD467.6 million) for the three months to 31 March, up from EUR122 million a year earlier but less than analysts had expected. Sales rose to EUR9.52 billion from EUR9.27 billion. The average selling price for Nokia’s smartphones fell 18 percent to EUR155 compared with a year earlier, although its total estimated share of the smartphone market increased by three percentage points to 41 percent. The full-year operating margin guidance for its key devices and services segment was lowered from 12-14 percent to 11-13 percent. "We continue to face tough competition with respect to the high end of our mobile device portfolio," said Nokia CEO Olli-Pekka Kallasvuo. After announcing a delay to the launch of a new range of high-end phones, Kallasvuo said, “We will not ship the product until the quality meets the end-user needs and demands.” Apart from the Symbian upgrades, Nokia also aims to launch premium devices based on the new MeeGo platform. CFO Timo Ihamuotila said that improving the high-end product range will be Nokia’s main priority.

VERIZON STRUGGLES TO ADD NEW USERS
Verizon posted a profit of USD2.28 billion, a 29 percent decline from USD3.21 billion in the corresponding period the previous year. The number of net new contract subscribers fell by one-third over last year for Verizon Wireless, to 423,000. Verizon Wireless added 1.3 million prepaid customers through its wholesale agreements. Removing Vodafone’s 45-percent stake in Verizon Wireless, Verizon’s profit was USD409 million, down 75 percent from a year ago.