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

To: Alfred W. Post who wrote (4369)	10/25/2000 1:00:29 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 5390

Without being too terse, there are more than 4000 posts on this thread, I suggest you look around some more to find out the overall business segments of ERICY and the standing in the world markets. You also might want to start with the latest annual reports. Headsets are not much of a moneymaker for ERICY. Many have suggested that the headset division be spun off altogether. Right now ERICY is starting to move more toward contract manufactures to build phones - see link at the bottom. NOK has a solid headset biz and make the most profits from it. QCOM dumped their headset division in light of the more appropriate biz model of revenue from IP. The infrastructure biz makes the money at ERICY and is a world leader - what % I do not know. There are many, many others out there also looking for business. (the link that you responded to shows some of them). I would not say that ERICY has the inside track on developing country markets or contracts. Politics (and payoff's) are often the determining factor in winning these. Ericsson is counting more on outsourcing By Electronic Buyers' News Oct 5, 2000 (12:18 PM) URL: ebnews.com Three weeks ago, LM Ericsson signed a deal with Arima Computer Corp., a little-known Taiwan-based contract electronics manufacturer, to make entry-level mobile phones. Arima is one of a handful of small manufacturing partners the Swedish telecom titan turns to for high-volume production of mobile handsets. However, such agreements don't mean Ericsson has turned its back on major CEMs. In fact, the company, which has 100,000 employees in 140 countries, relies heavily on larger CEMs. And since it views outsourcing as a necessity in today's complex international markets, Ericsson plans to engender more cell-phone business through CEM partners both large and small. Bjorn Bostrom, Ericsson's senior vice president of supply in Stockholm spoke recently with EBN senior editor Claire Serant about the company's outsourcing plans. EBN: Are you outsourcing cell phones because of overcapacity? Or does Ericsson have a commitment to outsourcing?Bostrom: We have a commitment to outsourcing because we want to concentrate on our core business-new products, new technologies, new-product introductions-vs. noncore business, which is volume production of mature products. EBN: How much of your cell-phone business are you outsourcing? How is that number likely to change in the future?Bostrom: We can't disclose what [numbers] we are doing now. I can tell you we think we might increase outsourcing 30% next year for cell phones and the accompanying infrastructure snip<:> Jim