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TELECOMS

3G phone sales up 100 percent

Third quarter sales of third-generation (3G) mobile phones were up 100 per cent on the same period last year.

The success of 3G mobile phones means that they will soon account for half of all Swedish mobile phone sales. Music mobiles have set a pleasing tone, while Sony Ericsson has held on to its grip on the Swedish market.

“The launch of third generation 3G telephones meant that sales doubled for the third quarter, with music mobiles increasing most,” said David Larsson from IT-Research.

A total of 719,000 music mobiles were sold during the third quarter.

Sony Ericsson strengthened its position ahead of Sony and Samsung. The company’s K 800 3G telephone was the quarter’s best seller.

Sales of 3G mobiles were up 100 per cent on last year amounting to a total of 423,000 telephones. According to IT-Research, this means that 3 G mobile sales accounted for 42 per cent of total mobile phone sales for the period.

A total of over one million mobile phones were sold in Sweden during the third quarter, up ten per cent on the same period last year.

The GSM curve pointed downwards over the same period. There were 17 per cent fewer GSM mobile phones sold this quarter than in the corresponding period last year.

IT-Research calculates that approximately 3.5 million mobile phones will have been sold on the Swedish market by the end of this year. This represents an increase of 7 per cent on last year.

BUSINESS

Fired Ericsson boss to get millions in payouts

Swedish telecoms giant Ericsson has fired its long-standing CEO Hans Vestberg, but said he will receive a severance package amounting to millions of kronor.

Fired Ericsson boss to get millions in payouts
Hans Vestberg of Ericsson. Photo: Christine Olsson/TT
Swedish telecoms giant Ericsson has fired its long-standing CEO Hans Vestberg, the company announced on Monday morning.
 
Vestberg has been under pressure in recent weeks in the light of a falling share price and lower-than-expected profits. Last week, the company – Sweden's second largest by turnover – announced it was doubling the scope of a major cost-cutting program.
 
In a statement on Monday, chairman Leif Johansson said that “given the current market environment and the increased tempo of the execution of the company’s strategy, the board has decided that the time is right for a new leader to drive the next phase of Ericsson’s development.”
 
Johansson said Vestberg had “built strong relationships and partnerships with important customers around the world, and his leadership and energy have been inspiring for both employees and leaders within Ericsson.”
 
Vestberg, 51, has worked at Ericsson since graduating in 1991. He has been CEO since 2010.
 
Ericsson’s share price has plunged 23 percent so far this year, while the market as a whole has fallen just three percent. Operating profits for the second quarter were well below market expectations, at 2.8 billion kronor ($327 million).
 
The company’s deputy CEO Jan Frykhammar has been appointed as interim CEO.
 
Vestberg is likely to receive a severance package of 28 million kronor, seven million of which will be paid out during his six-month notice period.
 
“After the notice period he will get 21 million in severance pay, which corresponds to 18 months of salary. If he gets a new job within these 18 months, the payout could be cut to up to 50 percent,” Ericsson press officer Simon Sundberg told the TT newswire.