Ericsson's employees stand inside their booth at Mobile World Congress in Barcelona, Spain February 27, 2017. REUTERS/Eric Gaillard
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Ericsson has ditched its goal of winning more clients beyond the telecoms industry to refocus on selling networks to mobile phone companies in a move to cut costs and halt a dramatic fall in its share price. The Swedish firm's clients in its core business include Vodafone and Verizon but profits have plunged due to competition from Nokia and China's Huawei and as telecoms companies make savings. Ericsson said in 2014 it would diversify so that by 2020 up to 25 percent of revenue would come from industries beyond telecoms, such as media, utilities and transport, from an estimated 10 percent in 2013 .Ericsson has to prove it can remain relevant in an industry that has gone from over 10 major players to three in 20 years.While Ericsson pulls back, archrivals Huawei and Nokia are forging ahead with corporate clients in the automotive, transport and energy sectors.Ericsson is relying on its partner Cisco to plug a product gap in routers, but some clients say they find it easier dealing with a single supplier and therefore tend to favor Nokia or Huawei.
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