Telefonaktiebolaget LM Ericsson Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Gardiner - Citi - Analyst : Good morning, guys. Thanks very much for taking the call. I had one on the dynamics in the North American market. If I go back to the commentary you were making at the time of third quarter, you had a good result then, but you were expecting the sequential trend into 4Q was perhaps going to be a little softer seasonally off that stronger 3Q. As it turns out this morning, you're showing us very good trends in the US, in particular, you're obviously highlighting the share gains. Lars, you briefly just mentioned swap-outs as well. So I was interested in a bit more detail in terms of what's happening in the market? What indeed drove that upside relative to your earlier expectations. Was it more share gain under the new contract? Was it the broader market coming back, inventory replenishment? A little bit around that would be really helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 24, 2025 / 8:00AM, ERICb.ST - Q4 2024 Telefonaktiebolaget LM Ericsson Earnings Call B÷rje Ekholm - Telefonaktiebolaget LM Ericsson - President, Chief Executive Officer, Head of Segment Enterprise, Director I can take that. Thanks, Andrew, for the question. It's a good question. And what we have seen and that's why you see us talk more optimistically and confidently about the market starting to recover. We actually have seen the investment levels coming up in North America. Part of it is, of course, to replenish from a very low inventory level that we've seen in the industry. And part of it is, of course, driven by, call it, the traffic growth and the need for connectivity. So I feel that we saw a little bit broader base of purchases in Q4 than we may be expected when Q4 began.