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Tuesday, 24 April, 2001, 11:00 GMT 12:00 UK
Sony, Ericsson in mobile deal
![]() Chairman Helstrom announces the rebranding plans
Sony and Ericsson are setting up a joint venture to create a new range of mobile devices.
The companies got together to combine Ericsson's telecoms expertise with Sony's expertise in consumer electronics. The products created will have neither companies' names on them, instead being marketed under a new brand in a similar fashion to the Playstation or Walkman, according to Kurt Hellstrom, chief executive of Ericsson and the new venture's chairman.
"We will create totally new multimedia mobile products," said Mr Hellstrom. These phones will become entertainment, video, games and music consoles in addition to being telephones and personal organisers. "Mobility and wireless is about to cross the border into all sorts of consumer electronics; Walkman, Gameboy, video cameras and so on," Mr Hellstrom said. Mr Hellstrom said he still expects more people to access the internet from a mobile unit than from a fixed device by 2003. "It will change the way we communicate with each other. And it will most certainly change the business game for our industry." London base A new company will be set up in London to oversee the research and development, industrial design, sales and distribution of the mobile handsets.
It will have a global work force of 3,500. But the company will not produce the phones. This will be done by Sony, or by Ericsson's partners, including Flextronics. Combatting losses The Japanese electronics giant Sony and the Swedish mobile phone company Ericsson joined forces to revitalise their lossmaking mobile phone operations.
Sony will benefit from the deal because of Ericsson's customer base and mobile telephony knowhow. Ericsson will benefit from links with Sony because its electronics products are seen as innovative, stylish and popular with consumers. Under the deal, the two companies will retain the right to continue selling their existing products. However, an Ericsson spokesman said "we will not have pure Ericsson phones", adding that the company will slowly migrate its old business into the new venture. |
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