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Ericsson Considers Dumping Phone Joint Venture

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Aug 30, 2002, 10:39 AM by (staff)

Ericsson said on Friday it would pull out of handset-making and end its cooperation with Sony, if their mobile phone joint venture does not deliver satisfactory results in the next two or three quarters. Ericsson, the world's biggest producer of mobile networks, is currently struggling to return to profit some time in 2003. Sony Ericsson, owned 50-50 by Ericsson and Sony, was created last October to salvage the unprofitable handset units of both firms. It aimed to be profitable in the first year of its operations, but made an $86.02 million loss in the second quarter, and Ericsson said it would not return to the black this year.

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