Ericsson stock surges to new heights...
2000-02-03 STOCKHOLM: Dagens Industri, Financial Newspaper
di.se
<<Ericsson, the third-largest maker of mobile phones, soared by over 6 percent to SEK 706 late in the afternoon as investors continued to digest the positive news contained in the companys financial report for 1999. The Swedish telecom stock got an extra kick Tuesday from the news that it has reached an agreement with Qualcomm Inc. of the United States to develop wireless products based upon radio chip technology, supported by the Bluetooth standard.
"The interest in Ericsson has certainly increased. I think it is a result of the combination of the strong annual report and increased confidence (in the management)," says Handelsbanken analyst Gunnar Andersson.
Ericssons agreement with Qualcomm can lead to the development of new products by marrying the short-range radio technology of Bluetooth with the CDMA wireless standard. In effect, computing and telecommunications equipment will be able to talk to each other more simply.
In the future, Ericsson said, an end user will be able to walk into his or her office, have the handset easily update the schedule and phonebook to synchronize to the PC, or on a business trip, take a picture with a digital camera and send it to the office via the handset. (DI)
... but customers expect more from producers
At the GSM trade convention now under way in Cannes, one hears more positive comments about the future of the Swedish telecom.
"Ericsson has shifted its course, and started to cut costs. Thats good. Their telephones are trendier than ever, but they are still a more conventional company than Nokia," says Timo Aarva, a representative of Finnish mobile phone operating company Sonera.
Customers clogging the Ericsson and Nokia and Motorola booths are also seeking cheaper and more attractive cell phones that can be used all over the world: "I want a cell phone for less than 50 dollars," says George Schmitt, head of Omnipoint of the USA. (DI) >>
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