The mobile-handset business is losing market share and racking uplosses in the range of $500 million per quarter. The joint-venture deal with Sony won't be a panacea.
Ericsson dominates, but its margins are declining, and it risks losing market share.
NEGATIVE CASH FLOW
The company is bleeding cash and running low on funds. It is not clear where it can raise new money.
Two Swedish shareholders, the Wallenbergs and Handelsbanken, control the company through A shares. This makes decision-making and bringing in strong management difficult.