Ericsson ERIC recently announced that it has joined forces with Bharti Airtel, a prominent telecommunications company, and Volvo Group in India. The partnership will expand research initiatives in AI, Digital Twin and Extended Reality Technologies to explore their applications in manufacturing processes. The advanced technology suit powered by 5G and advanced 5G will expedite the adoption of the Industry 4.0 standard and, eventually, the Industry 5.0 standard in India.
5G advanced network offers high-speed connectivity and ultra-low latency which can serve as a backbone for industrial XR applications. It can effectively support real-time simulations, design prototyping, and immersive training across multiple factories. Ericsson and Airtel will work in Volvo’s factory and R&D Centre in Bangalore to conduct research related to industrial metaverse applications and also experiment with various immersive concepts in the manufacturing industry.
The findings from this collaborative research can bring transformational impact in industrial operations through enhancing workforce training, real-time process optimization with AI, and boosting production efficiency. The initiative will also boost network readiness for technologies like Industrial XR and facilitate the development of advanced communication solutions for smart factories.
ERIC Driving Digital Transformation in Qatar
Ooredoo Qatar, a major telecommunications company based in Qatar, has inked a memorandum of understanding with Ericsson to expedite the digital transformation process. The collaboration aims to develop 5G network solutions tailored to the distinct requirements of various industries, including oil and gas, airports and manufacturing sectors.
Will These Developments Drive ERIC’s Share Performance?
Public and private enterprises across sectors are increasingly looking to adopt cutting-edge technologies to drive operational efficiency, unlock new revenue streams and develop new business models. Robust 5G networks will play a key role in enabling those advanced applications. Ericsson is well-positioned to capitalize on this market momentum with its competitive 5G product portfolio.
With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speeds and capacity. It is the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.
ERIC’s Stock Price Movement
Shares of Ericsson have gained 51.2% over the past year compared with the industry's growth of 46.4%.
ERIC’s Zacks Rank and Key Picks
Ericsson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Celestica Inc. CLS sports a Zacks Rank #1 at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
United States Cellular Corporation USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.
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Today, See These 5 Potential Home Runs >>United States Cellular Corporation (USM) : Free Stock Analysis Report
Ericsson (ERIC) : Free Stock Analysis Report
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InterDigital, Inc. (IDCC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
