Ericsson said sales grew 5 percent to SEK 69.6 billion in Q4 2020 from SEK 66.4 billion in Q4 2019, mainly driven by sales in North East Asia, Europe and North America.
Gross margin improved to 40.6 percent from 36.8 percent, Ericsson said.

Operating income increased to SEK 11 billion from SEK 6.1 billion.

Networks sales increased by 20 percent.

“We are today a leader in 5G with 127 commercial contracts and 79 operating networks. Organic sales grew by 5 percent for the full year. Our operating margin of 12.5 percent (5.0 percent) exceeded our 2020 target and reached the 2022 Group target range two years early,” Borje Ekholm, president and CEO of Ericsson, said.

Revenue from United States accounts for 33 percent of its total revenue, while China (8 percent), Japan (5 percent), Australia (4 percent) and Saudi Arabia (3 percent) contributed remaining part of the sales to Ericsson.

South East Asia, Oceania and India sales increased across all segments, driven by investments in LTE, primarily in India, and by 5G momentum, predominantly in Australia. Growth in Networks sales was driven by increased business volumes in Japan and continued 5G deployment in Mainland China.