An alliance between the world’s third-largest handset maker and the Japanese electronics behemoth with its powerful brand name would turn the heat up on Nokia Oyj and Motorola Inc, the world’s number one and two handset makers.
Japanese public broadcaster NHK said Sony, which has been building phones that store music on memory sticks, and Ericsson reached a basic agreement to form a joint venture in Britain by the end of this year, and will announce the deal next week.
Under the deal, the companies would spin off and integrate their current mobile phone businesses, the Nihon Keizai Shimbun. It was undecided if the venture would sell phones under a single brand, it said.
Both companies are in talks about potential handset businesses, but nothing has been decided, Sony commented in a company statement to the press.
We are in talks with Sony about putting together an operation in mobile phones, but no decisions have been taken yet, Ericsson spokesman Roland Klein added.
