Joseph Zhou's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q2 2024
Question
Joseph Zhou of Barclays questioned if the Q3 Networks gross margin guidance of 45-47% represents a peak level, given it approaches 2021 highs but with lower sales volume. He also asked if the new IPR contract was with a Chinese smartphone vendor.
Answer
CFO Lars Sandstrom acknowledged the margin is at a high level but stated the company is always working to improve. CEO Börje Ekholm added that the long-term shift to more software in the product mix could also influence future margins. Lars Sandstrom declined to identify the IPR counterparty, citing confidentiality.