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Sat 5 Aug 2000 04:00 AM

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Ericsson snubs critics with growth of 300%

Admist criticism of performance in the mobile phone market, due to top $150 billion by 2004, Ericsson has reported a growth in income before taxes of more than 300%.

Admist criticism of performance in the mobile phone market, due to top $150 billion by 2004, Ericsson has reported a growth in income before taxes of more than 300%.

Charges were previously laid against the Swedish giant when operating losses of $223 million were reported in its cell phone manufacturing division.

Ericsson acknowledged the losses, citing a component shortage from a fire at a key supplier, namely Holland-based Royal Philips Electronics. But Ericsson declined to comment when analysts reported over-priced handsets.

Much of Ericsson’s success is attributable to its core infrastructure business, which represents 70% of its total revenue and easily dominates the market.

Nonetheless, the cell phone division was identified as having “strategic importance”, helping Ericsson to keep track with new developments in cell phone technology. The report calls for “firm actions to restore profitabilty.”

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