World's largest telecom equipment maker, Ericsson said that it has seen a decline of 8 per cent in its sales during the second quarter. This has been triggered by the shortage of key components in the whole industry, something that was told by Nokia as well.

Stockholm-based company revealed that its sales have fallen down to 48 billion Swedish Kroner, or $6.5 billion as against 52 billion kroner during last year.

Yet, it was able to post a profit for second quarter in a row at the JV it has with Sony called Sony Ericsson. As per the deal between the two, they will be forming handsets on a 50 50 basis. In terms of money the same has increase from 8 million kroner to 2 billion kroner in a year.

Analysts believe that the main reason behind this shortfall is that the Asian operations that had reduced their production last year are taking time to come back to the original level.

Talking to media, Hans Vestberg, the Ericsson chief executive said that since the components are generic for the industry reduction in their supply is creating trouble.