Ericsson's results for the fourth quarter were acceptable. Sales growth was stronger than anticipated but margins weaker. This is not likely to move the shares. |
I think the share price will open unchanged or dip somewhat due to the fact that both the gross and operating margin were lower than expected. |
Nokia will have a tough time boosting its margins in the future given the tough competitive climate. |
The mobile systems side is doing well, but Marconi and the fixed-line side are weighing heavily. |
The read-across from particularly Lucent, but also Motorola, on Ericsson is limited. |
The results were very upbeat. However, Sony Ericsson may have lost market share compared to the fourth quarter as the overall market was very strong in the first quarter. |
We expect strong fourth-quarter results but foresee abating organic growth and falling margins in 2006. |