Ericsson’s networks organic sales rose 4%, while reported sales were flat at SEK 232.3 b. Due to the loss of market share in China, organic sales growth in the region was 8%. The company’s strategy to grow market share and invest in technology leadership enabled it to deliver a good Q4 and a good year overall. The acquisition of Cradlepoint, which was completed in Q4, further strengthens the organic enterprise portfolio and enables the company to reach the 2022 target. Despite the decline in Mainland China, organic sales grew 3% in Q4. Ericsson’s continuous investments in technology leadership and its product portfolio helped it mitigate the inflationary pressure.
For the fourth quarter, Digital Services organic sales remained stable compared to the same period last year. Excluding the impact of lower volumes in Mainland China, sales grew by 3%. Gross margin improved to 43.4% in Q4, while EBIT was positive at 0.4 b. The company is committed to increasing its investments in 5G and remains focused on developing a strong long-term competitive position. For the year 2021, organic sales declined by -6% due to lower customer demand and planned exits. The company’s goal is to grow profit margins through continuous improvement.