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

To: elmatador who wrote (4320)	9/22/2000 11:09:31 PM
From: froland	Respond to of 5390

elmatador: Siemens would be a good candidate to buy the handset division. The rumored Nokisson merger has been dead for some time. When you consider that Siemens and Ericsson are both European companies. Both nations are Germanic. Fewer chances exist for cultural clashes both corporate culture and national culture. Siemens has stated they intend to be among the top three cellular companies in the world. Given the component shortages which plague the industry, they can only achieve their objective through acquisition. What better company to acquire than Ericssons handset division. Given the way Ericssons share of the handset market has been plummeting, there may not be much for Siemens to buy. Here's a link to a recent Siemens press release where they stated their objectives. ic.siemens.com Here's the press release Siemens mobile is continuing its success course with a targeted marketing and production strategy. Demand for the new product family 35 exceeds internal planning. Despite global shortages in components, the group maintains its goal of more than doubling its volume in the coming fiscal year. "Our productivity, coupled with the right product policy and a comprehensive marketing concept, ensure ambitious sales and profit targets," argues Rudi Lamprecht, President of the Group Managing Board. Within the next two to three years, Siemens seeks to increase its market share significantly and become one of the world's three largest mobile solutions providers. The Siemens Group Information and Communication Mobile (ICM), founded on April 1, 2000, develops and produces mobile telephones and devices as well as mobile communications infrastructure. During the first nine months of the current fiscal year (FY 2000, October 1, 1999 to June 30, 2000), ICM increased its EBIT to 720 million EUR. (For FY 1999, the figure was 122 million EUR.) Siemens mobile has thus become, next to Infineon, the largest source of profit within the entire Siemens concern. Sales grew within the same nine-month period by 66 percent to 6.0 billion EUR from 3.6 billion. New orders increased by 90 percent to 7.6 billion EUR from 4 billion. This makes Siemens mobile one of the most rapidly growing Siemens groups. Siemens mobile is already number three world wide in GSM networks. For increasingly popular prepaid mobile services, it is the world leader. Siemens mobile has installed WAP platforms with 30 network operators, and has supplied GPRS network infrastructure for 10 providers. Ten additional GPRS solutions will be installed with network operators in the near future. Third generation mobile telecommunication technology - UMTS - is already being tested with ten customers. Siemens is the only company in the world that can supply both transmission technologies for UMTS: FDD (W/CDMA) and TDD. The 3G standard TD-SCDMA developed jointly by Siemens and the China Academy of Telecommunications (CATT) appears set to become the leading standard in China for third generation mobile telecommunication. Part of the production offensive includes the manufacturing alliance concluded by the Siemens plants in Kamp-Lintfort, Bocholt, Leipzig and Shanghai. Each of the facilities can produce all models of mobile telephones at the same quality level. The platform strategy has paid off for the new models, A35, C35i, M35i and S35i. A three-year outsourcing agreement has just been signed with the Flextronics International Ltd to produce approximately 33 million mobile telephones. The share of outsourcing should increase in the future while, at the same time, the capacity at Siemens' own plants will be significantly expanded. A comprehensive strategy is driving the goal to join the top three mobile solutions providers in the world within the next two to three years. In Asia alone, Siemens mobile will invest approximately 1.5 billion EUR for the expansion of its business over the next three years, including 500 million EUR for marketing. The core market will be China, where Siemens capitalizes particularly because of its brand strength. Entry into the U.S. market is planned for the coming year. In addition, more emphasis is being placed on a strategy including greater internationalization of research and development. New R&D centers have been established in San Diego, California; Pandrup, Denmark; and Peking. Siemens mobile The Siemens Information and Communication Mobile Group (26,000 employees, sales of 6 billion EUR in first 9 months of FY 99/00) offers a complete range of mobile telephone products in terms of devices, infrastructure and applications. Devices include mobile phones, ISDN phones, mobile organizers, cordless and corded phones. The infrastructure portfolio includes the complete range of network technologies from base stations and switching systems to applications and intelligent networks. froland.