Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (7868)	10/23/2000 10:53:40 AM
From: Puck	Read Replies (1) \| Respond to of 34857

Ericsson management has said that they are killing five or six phones in development in an attempt to narrow their product line, as Motorola has done, in an attempt to focus in profitability at the expense of volume. Their most recent quarterly statement states unequivocally and clearly management's position about the desirability of them staying in the phone business. On the c.c., Jorma discussed the natural synergies between the handset and infrastructure businesses and why it is strategically important to be in both. What he said I believe lends credulity to Ericsson's oft-professed desire to remain in the handset business. Withdrawing from the handset market would prevent Ericsson from being able to fine tune their system sales to the desires of the operators for services. Everywhere I turn, I find speculation that Ericsson will spin-off its unit. I don't believe it. I can believe quite easily that eventually the production of a majority, if not all, of their handsets will be outsourced, but I just cannot believe that management would have reiterated their desire to keep the business if they thought the idea of exiting it was a viable opportunity. Also, they did suffer severely from the component shortages, and the problems Phillips had caused Ericsson to produce 8 mil. phones less than they had expected in Q3. A good deal of their underperformance has been the result of transient factors that should pass. After Q4 the worst should have passed. They have a lot of catching up to do in refining their logistics but there's no reason to believe they can't do this if they are open to new ideas.

To: slacker711 who wrote (7868)	10/23/2000 11:11:53 AM
From: LarsA	Read Replies (1) \| Respond to of 34857

The CEO of Ericsson, Kurt Hellström is talking about their problems in todays Dagens Industri, a Swedish business daily. He says something to the effect that selling their handset division is a good idea but they have not found any one to save them so they have to fix the problems themselves. Also points out that having a handset business to be able to deliver a whole system will be even more important when 3G comes around. di.se\10\21\8356 In my opinion he is a little bit careless in his choice of words ....

To: slacker711 who wrote (7868)	10/23/2000 11:36:33 AM
From: EJhonsa	Respond to of 34857

Ericsson ditched the T36 primarily because it offered nothing that wasn't also available on the R520, which also supports GPRS, a feature lacking on the T36. Might be a little too early to push GPRS, but it could give Ericsson an edge in catering to people that want to buy a new phone, but don't want it to be obsolete in several months. Still, the R520, assuming that it's not priced too high, might be all that Ericsson has going for it. I read that in England, the R380 costs 480 pounds (about $700). Even most business users will be hesitant to pay that much for a phone. Eric