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Ericsson, Sony Trying to Slow Losses



RELATED SYMBOLS: (SNE)(ERICY)

STOCKHOLM, Sweden, Jan 29, 2003 (AP Online via COMTEX) -- LM Ericsson and Sony
Corp. said Wednesday they will inject 300 million euros ($324.6 million) into
their joint mobile phone venture in a bid to stem the unit's losses.

The venture, Sony Ericsson, has steadily lost money since it was established 15
months ago, and Ericsson executives had indicated last year that they planned to
put in more funding into it.

Stockholm-based Ericsson and Tokyo-based Sony will put in 150 million euros
($162.3 million) each during the current quarter.

The move could buy Sony Ericsson some much-needed time as it regroups and tries
to compete with Finland's Nokia Corp., the world's largest mobile phone market,
and encroachment by Schaumburg, Ill.-based Motorola Corp.

Analysts said the injection, along with the joint venture's new portfolio of
phones, bodes well for Sony Ericsson. They said it was sign of confidence in the
venture.

Ericsson has received plaudits for the release of its first color-screen phone,
the T68, which was launched in 2002, but it has been hampered by delays in new
models and competition from Nokia.

In the United States, Sony Ericsson has lost market share to Motorola and
Samsung. But its new portfolio of phones, including the high-end P800, which
features a built-in camera and personal digital assistant attributes, is helping
the venture recover. Also helping are its low-end models, like the T300.

Sony Ericsson said it sold 7.1 million handsets during the fourth quarter,
giving it a market share of about 6 percent, up from 4.9 percent during the
third quarter.

For the fourth quarter, the two companies said the joint venture lost 69 million
euros ($74.6 million) on sales of 1.2 billion euros ($1.3 billion), giving it a
cumulative loss of about 3.8 billion kronor ($444.7 million) since the joint
venture began.

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On the Net:


By MATT MOORE
AP Business Writer

Copyright 2003 Associated Press, All rights reserved

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APO Priority=r
APO Category=1700
(PROFILE
(CO:Sony Corp.; TS:SNE; IG:HMF;)
(CO:Nokia Corp; TS:NOK; IG:HEQ;)
)


KEYWORD: STOCKHOLM, Sweden
SUBJECT CODE: 1700
http://www.sonyericsson.com

(Wall Street)





Daniel Nieves