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Sony Ericsson Mobile Phones


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									Sony Ericsson Mobile Phones:

Sony Ericsson Mobile Communications AB is a joint venture established on
October 1, 2001 by the Japanese consumer electronics company Sony
Corporation and the Swedish telecommunications company Ericsson to
manufacture mobile phones. The stated reason for this venture is to
combine Sony's consumer electronics expertise with Ericsson's
technological knowledge in the communications sector. Both companies have
stopped making their own mobile phones.

The company's global management is based in Hammersmith, London, and it
has research and development teams in Lund, Tokyo, Mexico City, Beijing,
and Redwood Shores in the US. By 2009, it was the fourth-largest mobile
phone manufacturer in the world after Nokia, Samsung and LG. The sales of
products largely increased due to the launch of the adaptation of Sony's
popular Walkman and Cyber-shot series. In 2010, its market share had
fallen to sixth place behind Research In Motion and Apple.


Troubles in Ericsson's mobile phone business
In the United States, Ericsson partnered with General Electric in the
early nineties, primarily to establish a US presence and brand

Ericsson had decided to obtain chips for its phones from a single source—
a Philips facility in New Mexico. In March 2000, a fire at the Philips
factory contaminated the sterile facility. Philips assured Ericsson and
Nokia (their other major customer) that production would be delayed for
no more than a week. When it became clear that production would actually
be compromised for months, Ericsson was faced with a serious
shortage.Nokia had already begun to obtain parts from alternative
sources, but Ericsson's position was much worse as production of current
models and the launch of new ones was held up.

Ericsson, which had been in the cellular phone market for decades, and
was the world's no. 3 cellular telephone handset maker, was struggling
with huge losses. This was mainly due to this fire and its inability to
produce cheaper phones like Nokia. To curtail the losses, it considered
outsourcing production to Asian companies that could produce the handsets
for lower costs.according to whom?

Speculation began about a possible sale by Ericsson of its mobile phone
division, but the company's president said they had no plans to do so.
"Mobile phones are really a core business for Ericsson. We wouldn't be as
successful (in networks) if we didn't have phones", he said.

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