World's leading wireless network maker, Ericsson AB has reported a 26% dip in its profits in first-quarter due to reduced investments in the emerging markets, yet its margins depicted a significant rise.

The company's net income reduced to $174 million in the first-quarter ending March 31, which accounted to SEK0.39 a share. The profit fell below the analysts' expectations of 1.78 billion Kronor.

The sales fell by 9%, reportedly, given the cautiousness of the operators in developing markets, thereby affecting the deliverance of the network units.

However, the company managed to raise the margins, remarkably, during the quarter. These margins uplifted by 39% in contrast with 36%, the previous year, for the same quarter. This surge in the margins resulted from the efficiency improvements coupled with better business blend.

"This is a top-line miss but margins were resilient", Quoted the Merrill Lynch analysts.

The company has not given any remarks on its performance in the forthcoming quarters of this year. Meanwhile, it shared that it is expecting to double the mobile data traffic yearly for the upcoming 5 years.