From 2012 to 2016, Ericsson expects a compound annual growth rate of more than 4% in markets it serves (measured in USD with some variations), according to the company's newly published Annual Report. Ericsson argues that the underlying fundamentals for growth in the industry are intact, driven largely by the rapid increase in smartphones and mobile broadband subscriptions.
In his letter to shareholders, Hans Vestburg, Ericsson's President and CEO, says the company's strategic plan remains focused on three components:
- Excel in the core business – radio, core and transmission, and telecom services
- Establish leadership in targeted areas – modems, cloud, IP networks, TV and media, as well as OSS and BSS
- Expand business in new areas.
"We have continued with our strategy of expanding into targeted areas such as TV and media, IP, cloud, as well as OSS and BSS. And we have refocused our position in modems, winding up the ST-Ericsson joint venture and establishing our own thin modems business. We further strengthened our global services capabilities all over the world. And we continue to invest in research and development – SEK 162 billion in the past five years alone. We build on our core assets – our technology and services leadership and our global scale – as part of our constant evolution, something that is vital for maintaining our leading position in a transforming industry," stated Hans Vestburg.