Prestigious award from global research organization

Power Modules sales and market share increase

Vertical market penetration recognized in a very demanding market

Ericsson Power Modules has been awarded the 2009 World Vertical Market Penetration Leadership Award in the Board Mount DC-DC Converter market from global research organisation Frost & Sullivan.

The Vertical Market Penetration Leadership Award is prestigious recognition of Ericsson Power Modules' accomplishments in the board mounted DC-DC converter market. It is an unbiased, third party recognition. The award is presented each year to the company that has demonstrated excellence in capturing the fastest measured rate of change of market share of a specific vertical market. This award recognizes how fast a company increases its vertical penetration of a market, in terms of revenues or units as specified.

The market for board mount DC-DC converters is demanding in terms of quality and performance, as the companies operate in an environment where seamless continuity in operations and superior quality of available power are highly critical to their operations. In terms of the performance of DC-DC converters, the customer expectations are comparable to that of aerospace and defense customers. However, an important challenge exists in terms of price-sensitivities of customers in this market. The highly fragmented nature of the industry adds to the price-competitiveness that companies face.

The second challenge that the industry is facing is emerging trends in energy efficiency and low power consumption requirements of customers. Many countries have enforced regulations and standards that stipulate that telecommunications providers and datacenter operators in their region must use energy-efficient components and products. Companies in the market strive hard to achieve the norms specified by the regulatory bodies, along with strong demand from customers for miniaturization, efficiency, and price reduction.

"Over the years, Ericsson Power Modules has become a major force to reckon with in the board mounted DC-DC converter market with a focus on the ICT (information, communication and technology) segment. The company was able to achieve its market position by adopting a continuous innovation philosophy in its product development process. Moreover, the company has demonstrated its leadership qualities through offering highly energy efficient products in the market, with performance levels even beyond those mandated by rules and regulations," said Dinkar Krishnan, Research Analyst – Energy & Power Systems at Frost & Sullivan.

Frost & Sullivan estimates that Ericsson Power Modules presently holds about three percent share of the world market for DC-DC converters, whereas its share for the low power range of DC-DC converter market is about eight percent. In the board mount DC-DC converter market, the company holds more than a 10 percent share. There has been an increase of 1.5 percent over its share five years ago. At the end of 2009 Ericsson Power Modules sales increased compared to declines of 20 percent and more for most of the companies serving in the same area, which demonstrates the company's ability to withstand the pressures of changing economic conditions on business performance.

"This award recognizes Power Modules' ability to innovate, to develop high quality products and to service our customers all across the world, especially during the operating conditions of the last turbulent year. Together with our customers we have been able to find solutions that have enabled us to grow our mutual business," said Martin Hägerdal VP & Head of Power Modules. "It also confirms that the Ericsson Power Modules sales channels and product portfolio are well positioned in the market to deliver the most advanced board-mounted power solutions going forward."

Ericsson's recently introduced 3E power modules concept focuses on optimizing performance, flexibility and value for the end-user. 3E stands for Enhanced Performance, Energy Management, and End-user Value – the main benefits of the concept. Ericsson becomes the first company to offer a complete range of board-mounted-products based on digital control and monitoring, and in doing so, contribute to reduce energy consumption, and CO₂ emissions.

Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 1 billion subscribers and has a leading position in managed services. The company’s portfolio comprises of mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of "to be the prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 75,000 employees generated revenue of SEK 209 billion (USD 32.2 billion) in 2008. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

For further information, please contact

Patrick Le Fèvre, Marketing and Communication Director
Ericsson Power Modules
Phone: +46-10-716 95 07

Reader Inquiry reference: E0131(A) Frost & Sullivan review

If printing an Internet address please use Power Modules homepage and/or phone number to our International sales office:

URL: www.ericsson.com/powermodules
Europe: +46-10-716 96 20
U.S.A.: +1-972-583 6910/5254
China: + 86-21-5990 3258

About Frost & Sullivan Green Excellence Award in Product Innovation

The Frost & Sullivan Green Excellence Award in Product Innovation is presented to a company that has demonstrated unique product design and development initiatives, which is aligned with a sustainable and environmentally conscious objective within its industry sector. This Award signifies the company's identification of a unique and revolutionary solution with significant environmental benefits, while presenting tremendous market potential simultaneously. Moreover, the Award also signifies that the company's overall business strategy is sound and poised for success.

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