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Ericsson is investing in its competitive 5G-ready portfolio to enable seamless migration to 5G. The company’s R&D investments over the past two years have secured a competitive and industry-leading offering. Artificial intelligence and automation remain key enablers for the company’s future business development, creating customer and shareholder value. Ericsson remains confident in reaching long-term target for 2020 and 2022. The stock has also outperformed the industry in the past year on an average. However, the company’s business is exposed to geopolitical uncertainties in its operating countries. It appears that the company’s savings plans and job reductions are not adequate to counter macroeconomic woes and swiftly declining product demand. Soft mobile broadband demand and challenging conditions in the emerging markets are further acting as deterrents for major investments by telecom behemoths.

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