Thursday, 15 October, 2026
AI Demand Squeezes Telecom: Ericsson Beats Q3 Earnings but Warns of Rising Component Costs
By TechShots Studio
Ericsson reported higher-than-expected third-quarter core profit, with organic sales rising 7% to SEK 59.5 billion, driven by efficiency measures and network growth. However, the telecom gear giant warned that escalating component costs—particularly soaring memory chip prices fueled by the global AI infrastructure boom—will pressure gross margins moving into next year despite tactical product substitution efforts.
Read full story at REUTERS