But the Swedish tech giant had disappointing news for investors Tuesday (January 23).

The company expects further decline in 5G gear demand from mobile operators this year.

Telecoms suppliers expect a challenging year ahead as 5G equipment sales are slowing in North America.

India is a high growth market and is also set for a slowdown.

Providers have seen a few years of high demand for 5G equipment.

But buying was lower last year, which led firms like Ericsson to lay off thousands of employees to save costs.

The company said it could look at further cost cuts this year and that could potentially include layoffs.

Operating profit excluding restructuring charges fell to $705 million - down from $773 million a year ago.

It was above the number expected by analysts, though net sales fell 16% in the quarter and missed estimates.

Ericsson's shares were down 2% by the afternoon.