New Ericsson chief invests in R&D to safeguard company's future

Stockholm

THE last shakeup in the phone-equipment industry crushed profit margins at Ericsson AB and many of the Swedish manufacturer's peers didn't survive. As the next upheaval takes shape, its new chief executive officer says he's ready.

Borje Ekholm witnessed firsthand as an Ericsson board member the damage wrought by Chinese-led price wars. Ten months in as CEO at the Swedish wireless network maker, he foresees another wave of new rivals with the shift to networks run by software.

Mr Ekholm is resisting pressure to deepen cuts beyond the 10 billion kronor (S$1.62 billion) already planned as he invests in research and development to guard Ericsson's market position against furt…