Rivals combine mobile phone businesses, plan multimedia product expansion.
The first new phones of the joint venture between Sony and Ericsson will appear in late 2002, along with what the partners promise are totally new mobile multimedia products. The rivals have announced their plans to merge their mobile phone businesses and create a new mobile phone brand. The two signed a memorandum of understanding Tuesday to create a joint venture called Sony Ericsson Mobile Communications, in which each will own a 50 percent stake. The new company, scheduled to start operations on October 1, will be based in London and headed by Katsumi Ihara, now corporate executive vice president at Sony in charge of the Japanese company's mobile business. Ericsson President and Chief Executive Officer Kurt Hellstr m will be chair of the new company, and Jan W reby, president of Ericsson's Consumer Products division, will become executive vice president.