Sony And Ericsson To Put More Money Into Mobile-Phone Venture - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Sony And Ericsson To Put More Money Into Mobile-Phone Venture

Companies hope to stem unit's losses by injecting more than $320 million.

STOCKHOLM, Sweden (AP) -- LM Ericsson and Sony Corp. said Wednesday they will inject 300 million euros ($324.6 million) into their joint mobile phone venture in a bid to stem the unit's losses.

The venture, Sony Ericsson, has steadily lost money since it was established 15 months ago, and Ericsson executives had indicated last year that they planned to put more funding into it.

Stockholm-based Ericsson and Tokyo-based Sony will put in 150 million euros ($162.3 million) each during the current quarter.

The move could buy Sony Ericsson some much-needed time as it regroups and tries to compete with Finland's Nokia Corp., the world's largest mobile phone company, and encroachment by Schaumburg, Ill.-based Motorola Corp.

Analysts said the injection, along with the joint venture's new portfolio of phones, bodes well for Sony Ericsson. They said it was sign of confidence in the venture.

Ericsson has received plaudits for the release of its first color-screen phone, the T68, which was launched in 2002, but it has been hampered by delays in new models and competition from Nokia.

In the United States, Sony Ericsson has lost market share to Motorola and Samsung. But its new portfolio of phones, including the high-end P800, which features a built-in camera and personal digital assistant attributes, is helping the venture recover. Also helping are its low-end models, like the T300.

Sony Ericsson said it sold 7.1 million handsets during the fourth quarter, giving it a market share of about 6%, up from 4.9% during the third quarter.

For the fourth quarter, the two companies said the joint venture lost 69 million euros ($74.6 million) on sales of 1.2 billion euros ($1.3 billion), giving it a cumulative loss of about 3.8 billion kronor ($444.7 million) since the joint venture began.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
How COVID is Changing Technology Futures
Jessica Davis, Senior Editor, Enterprise Apps,  7/23/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll