Ericsson's revenue split, specifically concerning its Intellectual Property Rights (IPR) licensing revenues, is primarily allocated between two key segments: Networks and Cloud Software & Services. This structured approach helps in attributing the significant contributions of innovation across its core business areas.
Breakdown of IPR Licensing Revenues
The division of IPR licensing revenues within Ericsson is clearly defined, emphasizing the strategic importance of its technology and patents. This split ensures a clear understanding of where the value generated from its intellectual property is recognized.
- Networks: This segment accounts for the vast majority of IPR licensing revenues, receiving 82% of the total. This highlights the extensive intellectual property associated with Ericsson's core business in network infrastructure, including radio access networks, transport, and core networks.
- Cloud Software & Services: The remaining 18% of IPR licensing revenues is attributed to the Cloud Software & Services segment. This portion reflects the value of intellectual property tied to Ericsson's software solutions, managed services, and evolving cloud-based offerings.
It is important to note that this specific revenue allocation pertains to IPR licensing revenues and not the company's overall revenue from all operations. Furthermore, this structure maintains the existing geographical revenue distribution, indicating no changes in how revenues are recognized across different regions globally.
For more detailed financial information on Ericsson's segment reporting, you can refer to official company announcements such as their restated segment financials.
