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Ericsson set to quit handset production as losses mount
Posted: 26-Jan-2001 [Source: Financial Times]

[Ericsson will continue R&D and marketing activities in the handset division but looking elsewhere for manufacturing.]

by Christopher Brown-Humes, Stockholm; Dan Robert and Richard Waters, New York -- "Ericsson, the world's third biggest supplier of mobile phones, is expected to announce on Friday it is pulling out of handset manufacturing to stem huge losses in its consumer products division.

"It would be the first leading mobile phone maker to abandon production and comes when growth in demand for mobile phones is slowing sharply and there are concerns about delays in the introduction of third generation mobile internet services.

"The company will stress it remains committed to mobile phones. It will continue research, development and marketing activities, and phones will still carry the Ericsson brand name.


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