In 1878, L. M. Ericsson began making and selling his own telephone equipment. His telephones were not technically innovative. In 1878, he agreed to supply telephones and switchboards to Sweden’s first telecommunications operating company, Stockholm. As production grew in the late 1890s, and the Swedish market seemed to be reaching saturation, Ericsson expanded into foreign markets through a number of agents. The UK (Ericsson Telephones LTD.) and Russia were early markets, where factories were later established to improve the chances of gaining local contracts and augment the output of the Swedish factory. In the UK, the National Telephone Company was a major customer; by 1897 sold 28% of its output in the UK. The Nordic countries were also Ericsson customers; they were encouraged by the growth of telephone services in Sweden. Other countries and colonies were exposed to Ericsson products through the influence of their parent countries. These included Australia and New Zealand, which by the late 1890s were Ericsson’s largest non-European markets. Mass production techniques were now firmly established; telephones were losing some of their ornate finish and decoration. Despite their successes elsewhere, Ericsson did not make significant sales in the United States. AT&T’s Western Electric Company (via the Bell System), Kellogg and Automatic Electric dominated the market. Ericsson eventually sold its U.S. assets. Sales in Mexico led to inroads into South American countries. South Africa and China were also generating significant sales. With his company now multinational, Lars Ericsson stepped down from the company in 1901. Ericsson ignored the growth of automatic telephony in the United States and concentrated on manual exchange designs. Their first dial telephone was produced in 1921, although sales of the early automatic switching systems were slow until the equipment had proven itself on the world’s markets. Telephones of this period had a simpler design and finish, and many of the early automatic desk telephones in Ericsson’s catalogues were magneto styles with a dial on the front and appropriate changes to the electronics. Elaborate decals decorated the cases. World War I, the subsequent Great Depression and the loss of its Russian assets after the Revolution slowed the company’s development while sales to other countries fell by about half.