Ericsson Wants Out of the Phone Business

By Jane McEntegart, published on March 19, 2009 at 7:30 AM
Source: Tom's Guide US | Keywords: , , , , | Themes: Smartphones, Business, 3GSM
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Reports today claim that Ericsson could be hankering to get out of the mobile phone business.

InformationWeek this week reports (citing German publication Manager-Magazin) that Ericsson may want to withdraw from the mobile phone business. Ericsson has said that it may want to break away from its 50 percent partnership in Sony Ericsson to focus on “backend telecommunications infrastructure” as the economy worsens.

"In economic terms, 2008 has been a tumultuous year with world markets experiencing a serious downturn," Sony Ericsson president Dick Komiyama said. "We foresee a continued deterioration in the marketplace in 2009, particularly in the first half."

Similar rumors are reported over at Boy Genius Report, with a little extra thrown in for good measure. Apparently not only is Ericsson planning

on dumping cell phones for good, but Sony is contemplating buying out Ericsson’s share of the company and soldiering on without it.

If these rumors turn out to be true, we’ll be really disappointed. While some of the Sony Ericsson models as of late have been a little iffy (my W910i is prone to frequent but random crashing and replacing the handset did nothing to fix the problem) my first encounter with Ericsson was the company’s Ericsson T10s handset back in the late 90s and it was a great device. Ah, simpler times.

Surely some of you own a Sony Ericsson phone. What do you make of this news?

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Comments

thecompukid 03/19/2009 1:39 PM
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Don't let the door hit ya on the way out...

JMcEntegart 03/19/2009 1:41 PM
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@thecompukid: lawl, ouch!

lamorpa 03/19/2009 2:09 PM
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I have a feeling that Ericsson's decision about the continuation of this business will be based on market factors, not consumer's informal votes.

alex_314 03/19/2009 2:09 PM
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my S-E w980i is the best cellphone I've ever owned - crystal clear sound, awesome mp3 player, good reception, decent battery life, faste menus, and the only crash was caused by connecting to pc. I had some rough feelings for p990 but it had it's charm. I've briefly owned ericsson t28, it was one sexy phone for it's time.

Pei-chen 03/19/2009 2:30 PM
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I like SE's phones as they retain vale better than other makers'. Samsung phone drop in price twice as quickly as SE's and generally felt rushed. My father’s W580 (2mp) took better picture than my Samsung Soul’s 5mp camera.

JEVERSON 03/19/2009 2:31 PM
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I used to work at Ericsson when they first merged with Sony and I thought their handsets where much better before than they were after. Sony as a sole handset manufacturer will fail. Just like all their other products. They have a tendency to have great ideas but their delivery just sucks, not to mention they are always priced well above their competition. Can you say MiniDisc, PS3, PSP, UMD, and my all time favorite BETA Max?

Anonymous 03/19/2009 3:22 PM
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Sony is one of the few companies I now actively avoid, regardless of what products they release (which is normally easy as most of them are overpriced crap like the Vaio line). What mostly annoys me about them though is their complete lack of respect for their customers. "You have a problem with the product you just bought? Well, we could fix it in an update, but we're not going to. We'll make sure to only fix the issue in our upcoming products so that you're forced to spend further money if you really want it fixed. Thank you for wasting your time with Sony". And they bring this attitude to all companies they take over or merge with - Ericsson, Minolta, even Sonic Foundry support experience was entirely different before these companies went down with the Sony-disease. Sony is like the antithesis of king Midas, everything it touches turns to crap.

Anonymous 03/19/2009 3:26 PM
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the w580 my sister had been using is trash. Broken keys, crashing... it just failed despite being replaced by a new headset 3 times in one year (it would have been 4 if not for the 1 year limited warranty)! The latest 'feature' of the phone was having the display randomly flip so that EVERYTHING was backwards (if you held it up to a mirror it would look normal.

I must say though that my other sisters pink 580 has not had one problem... :-\

Tedders 03/19/2009 3:42 PM
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I had a Sony Ericsson phone for work and loved it. I thought that their phones were always pretty nice. If Sony takes over 100%, they will fail. I am with a lot of people and avoid Sony at whatever cost I can. Although, I am failing at that because I own a Sony TV (cheapest at BB) and a PS3.

anarchy4sale 03/19/2009 4:37 PM
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I like my W600I, but my first one froze up, and died, its a common occurance with the phones i think

Anonymous 03/19/2009 4:43 PM
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I think Sony will be fine without Ericsson. Sony made really good cell phone in Japan without Ericsson's help before they merged. I see no reason why they still need to be joined with Ericsson. I think Sony only joined with Ericsson back in the day because they wanted the Ericsson brand recognition that Ericsson had for the Western and European Markets.

thomaseron 03/19/2009 4:49 PM
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I miss my old T10s. I had a blue one. Good phone. The old phones could take a beating, so to speak. Not as fragile as today's phones. And the software was much better too.. not many crashes.. About the news, if they put some effort into stability and such, people will probably buy more of there phones..

Anonymous 03/19/2009 4:50 PM
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I had both Ericsson and S-E phones and I loved the Ericsson ones while the S-E ones didn't work so well for me and I generally hate their designs (exceptions: p800, M600i, T68i). I was really sorry when Ericsson phones ended and I think Sony phones suck.

Offtopic: Sony makes above average Tv's and notebooks but I can't imagine buying anything else from them

Anonymous 03/19/2009 6:25 PM
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I have a k500i (got it free with the subscription) and love it. Great sound quality (phones included), nice 2 meg pics, good Java compatibility (I've seen issues with other companies on that), fast menus, battery lasts a lot. The only thing I wish was a bigger display (240x320 instead of 176x220), but I'm not willing to fork the cash.

ethaniel 03/19/2009 6:28 PM
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I have both a W200 and a W580i. Both are rock solid, the only thing in the W580i are the cracked keys, but it works.

megamanx00 03/19/2009 6:39 PM
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Meh..

ADM-86 03/19/2009 7:10 PM
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I honestly like Sony ericsson phones, in my opinion they are one of the best cellphone makers if not the best.

Never had any problems with my w880.

bustapr 03/19/2009 8:18 PM
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I don't really care if erricson goes out of the phone business. I actually think erricson phones suck since they haven't thrown a decent smartphone yet. But if Sony buys Erricson's share, then that would actually be a better option.

belter 03/19/2009 8:30 PM
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I loved my t68i and P800 and my wife loves her w8xx phones. However, I was really disapponted with my M600i. I can't get rid of the POS. I am now on a Samsung Blackjack II with WM6.1 and have not been this happy since my p800. Goodbye SE. You were great for a while but I am now in love with the latest WM devices.

zelog 03/20/2009 12:38 PM
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That's the problem with today's consumers. As soon as they run into one bad product, the whole company should just fall over and die. Because for some reason that gives the consumer vindication, justice has been served. You guys are really messed up. No company in the world will always make great products, that's a seriously flawed view of reality. When a company the size of Ericsson want to get out of a huge market, you should be thinking "Shit, this really is serious". Instead, you wonder why the world isn't treating you better for spending a whopping $300 on a piece of electronics. Like it gives a flip about your $300.

Anonymous 03/20/2009 1:25 AM
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Loved the t630, love my w300. I have it for 2 years and i don't see all it offers in the competition... SyncML, solid Java performance, and AAC+ are the brightest bullet points for me. In a 2 year old budget phone. Their unlocked ones offer more convenient features than competitors priced 3x times higher.

As for memory Sticks, I also have a Vaio laptop, a Cybershot camera and a PSP, so I can't really say I'm lacking spare sticks.

However, their proprietary connectors suck... hard.

Andy_Newton 03/20/2009 4:19 AM
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I normally stick with one brand for my day to day needs, except for a certain products they don't offer. So, I agree that most consumers today believe that one company must fall down because of one bad product.

But in case of Sony, not only most of their products are over-priced for no apparent added value and for no obvious reasons, THEY DO NOT RESPECT THEIR CUSTOMERS!!! Have you been in touch with their customer support lately? They are terrible.

I believe which ever company that DOES NOT respect their customers must go down.

-ND

eddieroolz 03/20/2009 10:39 AM
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Though I use LG and don't really like SE phones, I admit they make many of the best out there. Sad to see them go.

Anonymous 03/20/2009 12:58 PM
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My K800i is the best phone I've ever owned and I've been waiting for a proper replacement since my 2 year contract ran out almost 6 months ago. The C905 is close but has build quality issues. I will probably avoid Sony phones if they buy out Ericsson's share and go back to Nokia. The SE phones appear to be getting cheaper and cheaper quality, I don't see that getting better with Sony 100% in charge.

Anonymous 03/29/2009 11:34 AM
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fuck you all

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