>> Ericsson's shares taking a dive Tuesday after it slashed its 2017 outlook and posted heavier losses than expected.>> We've seen a tough market. Our sales are down about 13% if you adjust for currencies. Our clients are investing a little less, and they try to put off investments to the future.
And that affects us.>> The mobile telecom equipment maker is battling aggressive competition from rivals Nokia and Huawei. And more importantly, the battleground is shrinking. Telecom firms are spending less while demand for next-generation 5G technology is still years away. The company has plans for a fight back. It stunned investors earlier this year by announcing $1.7 billion in write downs and restructuring costs.
It's also slashed jobs and is cutting costs to the bone, but still has too convince investors it's not to little, to late.>> Our ambition and goal is to build a stronger Ericson built on technology and product leadership. This demands increased investment in research and development, and increased efforts in that area to eventually create a competitive portfolio.
To finance this and create a satisfactory profitability, we have to fix the cost side.>> But the firm now sees the mobile infrastructure model shrinking by high single digit percentage this year. That's compared with earlier guidance of a two to 6% decline. And turnarounds don't get any easier in a falling market.