Ericsson is once again profitable after it relieved itself of the loss-making mobile phone division by entering a joint venture with Sony.
After which, it focused on core businesses including network infrastructure and various wireless technologies. Today, it also offers airborne, terrestrial, and marine radar systems, plus various products that integrate copper and optical cables, and power networks.
Like most of its peers in the mobile networks industry, Ericsson was bleeding after the telecommunications industry crash in 2000. The Swedish giant laid off thousands of employees worldwide in an attempt to curb losses.
In 2004, Ericsson also shut down its Bluetooth division, and it has no plans to continue design and development around Bluetooth. But the company has said that it will continue to support existing customers and include it in products.
In the Asia-Pacific region, the company remained upbeat on its turnaround, inking a slew of deals last year with various operators, such as Thailand's AIS and China's Guangxi Mobile to expand their cellular networks.
On the outsourcing front, Ericsson's US$400 million outsourcing agreement with India's Bharti Tele-Ventures, showed the expanding cloud of the company in the region. The Swedish company would manage, maintain and provide quality assurance for 13 cellular networks belonging to Airtel, Bharti's mobile phone subsidiary.