Sony Ericsson is a joint venture established on October 1, 2001[1] by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. The stated reason for this venture is to combine Sony's consumer electronics expertise with Ericsson's technological leadership in the communications sector. Both companies have stopped making their own mobile phones.
The company's global management is based in Hammersmith, London, and it has research & development teams in Sweden, Japan, China, Germany, the United States, India, Pakistan and the United Kingdom. By 2008, it was the third-largest mobile phone manufacturer in the world after Nokia and Samsung.[citation needed] The sales of products largely increased due to the launch of the adaption of Sony's popular Walkman and Cyber-shot series.
While Sony Ericsson has been enjoying strong growth recently, its South Korean rival LG Electronics overtook it in Q1 2008 due to the company's profits falling significantly by 43% to €133 million (approx. US$ 179.6697 million [4]), sales falling by 8% and market share dropping from 9.4% to 7.9%, despite favourable conditions that the handset market was expected to grow by 10% in 2008. Sony Ericsson announced another profit warning in June 2008[5] and saw net profit crash by 97% in Q2 2008, announcing that it would cut 2,000 jobs, leading to wide fear that Sony Ericsson is on the verge of decline along with its struggling rival, Motorola.[6] In Q3 the profits were much on the same level, however November and December saw increased profits along with new models being released such as the C905 being one of the top sellers across the United Kingdom.
Sony Ericsson has, as of July 18, 2008, approximately 9,400 employees and 2,500 contractors worldwide. Hideki Komiyama is the president of the company and has been since November 1, 2007 when he replaced Miles Flint. The Corporate Executive Vice President is Anders Runevad.
Sony was a marginal player in the worldwide cell phone market with a share of less than 1 percent in 2000. It was also struggling in this area with losses but wanted to focus more in this area. In April 2001, Sony confirmed that it was in talks with Ericsson for a possible collaboration in the handset business. This was soon after Toshiba and Siemens had announced plans in November 2000 to work together on handsets for 3G mobile networks, which was cancelled in 2001.
By August 2001, the two companies had finalized the terms of the merger announced in April. The company was to have an initial workforce of 3,500 employees.
The company's global management is based in Hammersmith, London, and it has research & development teams in Sweden, Japan, China, Germany, the United States, India, Pakistan and the United Kingdom. By 2008, it was the third-largest mobile phone manufacturer in the world after Nokia and Samsung.[citation needed] The sales of products largely increased due to the launch of the adaption of Sony's popular Walkman and Cyber-shot series.
While Sony Ericsson has been enjoying strong growth recently, its South Korean rival LG Electronics overtook it in Q1 2008 due to the company's profits falling significantly by 43% to €133 million (approx. US$ 179.6697 million [4]), sales falling by 8% and market share dropping from 9.4% to 7.9%, despite favourable conditions that the handset market was expected to grow by 10% in 2008. Sony Ericsson announced another profit warning in June 2008[5] and saw net profit crash by 97% in Q2 2008, announcing that it would cut 2,000 jobs, leading to wide fear that Sony Ericsson is on the verge of decline along with its struggling rival, Motorola.[6] In Q3 the profits were much on the same level, however November and December saw increased profits along with new models being released such as the C905 being one of the top sellers across the United Kingdom.
Sony Ericsson has, as of July 18, 2008, approximately 9,400 employees and 2,500 contractors worldwide. Hideki Komiyama is the president of the company and has been since November 1, 2007 when he replaced Miles Flint. The Corporate Executive Vice President is Anders Runevad.
Sony was a marginal player in the worldwide cell phone market with a share of less than 1 percent in 2000. It was also struggling in this area with losses but wanted to focus more in this area. In April 2001, Sony confirmed that it was in talks with Ericsson for a possible collaboration in the handset business. This was soon after Toshiba and Siemens had announced plans in November 2000 to work together on handsets for 3G mobile networks, which was cancelled in 2001.
By August 2001, the two companies had finalized the terms of the merger announced in April. The company was to have an initial workforce of 3,500 employees.
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