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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Mika Kukkanen who wrote (3623)	8/20/1999 4:46:00 PM
From: P2V	Read Replies (2) \| Respond to of 5390

Ericsson News Release, shamelessly lifted from the ROP messages.yahoo.com STOCKHOLM, Aug 19 (Reuters) - Ericsson, battling to regain popularity in the tough mobile phone market, launched its slim and smart new T28 model on Thursday which analysts expect will boost profits but not market share. As well as the pricey T28, Ericsson also launched a cheaper colourful T10 model and its Internet-friendly MC 218 hand-held computer. Amid a floorshow of aliens invading earth to steal the T28, Ericsson said it expected the new range, which will be in the shops next week, to account for half its sales in its Consumer Products business area by the end of 1999. The new range includes two products already launched -- the mid-range T18 phone and the cheaper A1018 version. The upmarket T28 phone costs around 6,500 Swedish crowns ($786), although many mobile operators are likely to offer it at a discount. Ericsson hopes the new phone, whose 95 by 49 by 15 millimeter dimensions enclose a smart menu system, voice dialling and voice answering facilities, will revive its flagging fortunes. Although mobile phone handsets account for less than one quarter of Ericsson's sales, which are dominated by systems for mobile and network operators, mobile phones are crucial for Ericsson's image and branding. ``It should improve Ericsson's image and profitability as it will be a high-margin product but I don't suspect it will have a huge impact on unit market share,' DLJ Technology Group analyst Douglas Smith told Reuters. Evli Securities telecoms analyst Sami Sarkamies agreed, saying the phone would definitely improve Ericsson's image, which has been under pressure in the last year as rival Nokia launched more advanced models. Ericsson shares closed down three crowns at 260 in a negative market. ``We now have a broader product mix with products at the more expensive end of the segment,' Ericsson Consumer Products Marketing Director Jan Ahrenbring told Reuters. ``This gives us the chance to set wider prices and therefore higher margins.' Ericsson last month posted a 32 percent drop in second-quarter earnings, hurt by restructuring costs and weak sales in Consumer Products, which fell 4.2 percent to 10.37 billion crowns out of total Q2 sales of 50.81 billion crowns. Analysts said the T28 phone would probably stabilise its mobile phone market share, but was unlikely to affect the share of Finnish rival Nokia. Its most direct competitor would be Motorola's tiny V-series high-priced phone. ``I would imagine it will more be eating into Motorola's market share,' Sakamies told Reuters. ``They definitely need a good medium-range phone for the mass market and that's what they're missing,' Sarkamies said. The hand-held MC 218 computer allows access to the Internet via software called Wireless Application Protocol (WAP), which adjusts Internet sites to fit a mobile phone. Ericsson estimates that 1.5 million mobile phones will be sold in Sweden this year and it will have a 40 percent share of that market. Globally it expects sales of 240-260 million phones and it forecasts a market share of at least 15 percent, leaving it in third place after Nokia and Motorola. ($1-8.306 Swedish Crown) Off Topic ?? Mika, I think the "Real Orange" may have "lost a Peel or two", Seems that he's overcome by boredom. :-) Mardy.