Ericsson has faced soaring semiconductor prices amid a surge in AI-linked demand. (EPA Images pic)STOCKHOLM: Swedish telecoms giant Ericsson posted Thursday a 49% drop in net profit for the third quarter from a year earlier, when the group benefited from a one-time gain from the sale of a US business.
However, profit on ordinary operations beat analyst expectations thanks to "solid customer demand in strategic markets", the company said.
Nonetheless, the group has faced soaring semiconductor prices as a result of the surge in AI-linked demand, and it warned that geopolitical risks and rising component costs were "a headwind to gross margin next year".
It said it was responding with "portfolio optimisation, pricing and efficiency measures".
