Ericsson AB, saw its first quarter profits go down by 27 per cent. This is against the analyst estimates, who had predicted a profit.

The drop happened for the largest wireless network maker because the emerging markets spent less than what it had anticipated. Net income of the company went down by 1.26 billion kronor or $174 million, which is less than last year's figure of 1.72 billion kroner.

This is less that what the analysts had predicted in a survey done by Bloomberg. They had predicted a profit of 2.02 billion kroner. The revenue of the company went down by 9 per cent to end at 45.1 million kroner.

This is less than 48.1 million kroner that Ericsson had reported last year. Most of the fall, the company believes has happened since it is facing very tough price war by its rivals. It reported a fall in profit in 8 out of 10 regions.

The biggest drops happened in Africa and India. Meanwhile, because of its integration with Nortel, its revenues more than doubled in North America. Analysts believe that the falling sales can impact the future results severely.