Sony, Ericsson unify phone efforts
By CBS.MarketWatch.com
Last Update: 8:39 PM ET Apr 18, 2001
TOKYO (CBS.MW) -- Japan's Sony Corp. and Sweden's Ericsson are planning to integrate their cell phone operations to expand global market share, according to a news report out of Japan on Thursday.
The two companies have come to a basic agreement in which their cell phone businesses will be unified into a yet-to-be established joint venture firm in Britain, public broadcaster NHK television said.
Tetsuo Kanno, a Sony (SNE: news, msgs, alerts) spokesman in Tokyo, said he could not immediately confirm the report. He added, however, that a news release would be prepared later Thursday. He provided no details on its contents.
In a statement faxed to CBS.MarketWatch.com in Tokyo, Sony said the company is in talks with Ericsson about a possible alliance in the field of mobile phone technology, but nothing concrete has been decided.
According to the NHK report, Sony and Ericsson (ERICY: news, msgs, alerts) will also jointly conduct research and development of a next-generation high-speed cellular phone. The network quoted company sources it did not identify.
The report said it would be the first time in the world that leading manufacturing companies separated their core cell phone operations from their parent companies, the report said.
By combining operations, Sony and Ericsson can reduce cell phone development costs and increase international market share, the report said.
Ericsson, based in Stockholm, sold 40 million cell phones last year, giving it a 10-percent global share. It is the No. 3 maker of cell phones in the world.
Sony's global cell phone market is estimated at about 1 percent, Kanno said.
Shares of Sony closed trading Wednesday up $5.59, or 7.8 percent, at $76.94. Ericsson closed up 62 cents at $6.32. |
