Ericsson has been thrown off by rising memory chip prices; its stock hit the largest drop in 18 months. Even Citi is concerned that profit-margin pressure may drag on until 2027. Life for telecom equipment vendors is really tough right now.

Crypto news: Ericsson’s stock price in Stockholm has fallen sharply due to profit pressure from memory chip inflation, reaching its largest drop in 18 months. The company warned that soaring component costs will affect the profit margin of its core network business, and the stock briefly dropped by 10%. A Citi analyst said the main concern is that the impact on profit margins will persist through 2027. In the second quarter, adjusted EBITDA fell 7% to 6.88 billion Swedish kronor, slightly above Bloomberg’s consensus estimate of 6.82 billion Swedish kronor. Ericsson is cutting costs to cope with the impact of weak operator spending on the telecom equipment industry. The company laid off about 5,000 jobs in 2025 and plans similar layoffs this year. A BNP Paribas analyst emphasized that cost pressure facing Ericsson is intensifying.