Swedish telecom gear maker Ericsson on Friday said its share of sales from the Indian market doubled in the first half of the current year 2021 to four percent, making the country the third-highest revenue contributor for the group, according to the company's financial performance report.
India had contributed two percent to the global sales for Ericsson during January-June 2020.
The United States leads as the biggest market for Ericsson with 34 percent share in global net sales, followed by Japan with five percent. China, which was Ericsson's second-biggest market last year with nine percent of the total sales, has slipped to the fifth rung to 3 percent.
For the second quarter ended June 30, 2021, Ericsson has posted an eight percent growth in net sales to 7.1 billion Swedish Krona (SEK) on a constant currency basis in Southeast Asia, Oceania and India, primarily driven by 4G investment in India. The company had recorded net sales of SEK 6.6 billion in the same period a year ago.
Ericsson said on an adjusted currency basis, growth in the region was 14 percent. "Currency-adjusted sales increased 14 percent y-o-y. Networks sales increased y-o-y primarily driven by continued investments in LTE (4G), mainly in India, and as a result of the timing of project milestones in Southeast Asia," Ericsson said in the financial performance report.
The company's global net sales declined by a percent to SEK 54.9 billion during the reported quarter from SEK 55.6 billion in the second quarter of 2020. Ericsson said its organic sales, however, grew 8 percent globally.
The company experienced a backlash of barring Chinese vendors in Sweden from 5G with a dip in sales of SEK 2.5 billion in mainland China.
In a statement, Ericsson President and CEO Borje Ekholm said, "We are well-positioned to take advantage of continued market momentum with our competitive 5G product portfolio and cost structure."
However, Ekholm added, it is prudent to forecast a materially lower market share in mainland China for networks and digital services, as the earlier decision to exclude Chinese vendors from the Swedish 5G networks might influence market share awards.