Ericsson says it's "committed" to Sony phone venture
updated 03:25 pm EDT, Mon March 23, 2009
Ericsson committed to Sony
The latest in the on-again off-again rumors of a split between Sony and Ericsson in their joint cell phone venture has the Dow Jones reporting that Sweden's Ericsson has no plans to get out of the venture, according to a Monday MocoNews story. Ericsson spokesperson Minako Nakatsuma Olofzon has dismissed the rumors and maintained that its relationship as part of Sony Ericsson is stable. "We are committed to the joint venture... we haven’t changed our view on that," he said.
The most recent rumors regarding the split had Sony in talks with banks to buy out Ericsson's 50 percent stake in the company, although the electronics giant has posted its first loss in 14 years and is therefore not likely to be in a position to make such a large purchase. The partners have also allegedly not been seeing eye-to-eye in terms of handsets, including a PlayStation-branded phone.
Pressure also exists that stems from Sony Ericsson's own fiscal performance. This past Friday, Sony Ericsson said it would lose between $465 million and $533 million in the first quarter, citing "weak consumer demand" for its cellphones amid the world economic crisis.
