Ericsson CEO committed to Sony Ericsson

By : |April 1, 2010 0

STOCKHOLM, SWEDEN: Ericsson will keep its 50 percent stake in struggling handset maker at least for the next three years, its chief executive said on Thursday.

In answers to questions from readers of Swedish business daily Dagens Industri, Ericsson’s top executive, Hans Vestberg wrote that Ericsson was satisfied with its cooperation with joint venture partner Sony in Sony Ericsson.

Asked if Ericsson would still have its 50 percent stake in Sony Ericsson, the world’s fourth biggest handset maker by sales, in three years, Vestberg said: ‘Yes.’

Partnering with the world’s biggest consumer electronics firm will bring increasing benefits, Vestberg added.

Sony Ericsson reported its seventh straight quarterly loss in January, hurt by the global downturn and what analysts describe as a weak product portfolio.

Ericsson expects its handset arm to move into the black towards the end of 2010 as new phones hit the shelves and the handset market begins to recover.

"Sony Ericsson is going to come out of its tough period and be profitable again," Vestberg said.

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