Are Ericsson’s Recent Results a Premonition of Things to Come for Wireless Infrastructure?

Well, Ericsson’s latest results are in and the picture is a bit somber. Both sales and profit have slipped and more layoffs are on the near horizon. Two ancillary businesses, handset manufacturer Sony Ericsson and semiconductor maker ST-Ericsson also lost money. Does this mean some massive miscue on Ericsson’s part? Probably not. We think that what is actually going on here is a massive restructuring of the wireless infrastructure equipment and services business overall. Since cellular’s inception, the curve has been more or less a straight line aimed upwards and to the right. For over a quarter of a century, the wireless infrastructure business has been a thriving one.

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