UPDATE 3-Ericsson eyes margins, outlines $25bn R&D spend

(Adds CEO comments and Sony Ericsson details, updates shares)

By Sven Nordenstam and Eva Odefalk

STOCKHOLM, May 14 (Reuters) - Telecom equipment maker Ericsson outlined a $25 billion, five-year research and development (R&D) plan on Wednesday and vowed to stay focused on boosting margins, but avoided giving specific targets.

Ericsson, whose shares have gone on a rollercoaster ride in the past six months as margins have been hit, said it can do better with margins but did not give any target or timeframe.

"We believe that we should be able to improve the margins over time," said Chief Executive Carl-Henric Svanberg at an investor presentation. He also suggested the business mix that damaged the company last year would not darken further.

Svanberg repeated the company's outlook for 2008, adding details on where business was slow and on areas such as India where it was growing.

He touched on rising revenue from the sale of intellectual property rights (IPR), an issue analysts had hoped to hear more about.

"What is interesting is what they have said on the R&D portfolio, and that India is growing," Helena Nordman-Knutson, analyst at Ohman, said.

She saw the India remark as a long-term positive, but added: "Margins are under pressure in the short term."