Ericcson sees end of China Crisis

Ericsson-A1018s-3Swedish mobile telecom equipment maker Ericsson said sales in China recovered which would be news to Apple and the other telco makers who are seeing their sales slide.

Ericsson added that business in the US remained stable as it posted fourth-quarter operating profit above market expectations. Most of this was thanks to a boost  in patent fees.

In 2015, group sales dropped 5 percent on a comparable basis after declining 2 percent in 2014.

“In North America, the mobile broadband investments remained stable, with additional hardware sales in the quarter. 4G deployments in Mainland China recovered after a weak third quarter,” Ericsson said in a statement.

Operating profit was $1.29 billion. Sales were slightly lower than expected and the gross margin was 36.3 percent against a mean forecast of 37.3 percent.

Sales and profits were lifted by a one-off payment from Apple after the firms settled litigation last month and signed a patent license agreement.  At the time no financial details were disclosed.