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Sony Ericsson Not Interested In Motorola Handset Division

By Dianne See Morrison - Mon 11 Feb 2008 05:19 AM PST

New Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) CEO Hideki Komiyama says the company is not interested in Motorola’s handset business, though they plan to step up their efforts to increase their share of the US market, reports the WSJ. For one, Komiyama said it would be difficult to manage both the Motorola (NYSE: MOT) and the Sony Ericsson brand, and that changing the American handset maker into something else would be “killing this brand.”

Komiyama: “The idea is not attractive.” Plus, merging two large companies would bring about its own problems.

Instead, Sony Ericsson, currently the world’s fourth largest handset maker, will grow “organically” in the US. It plans to introduce more US-centric handsets like the X1 that was announced yesterday. The device to be released later this year is powered by Windows Mobile, an OS that American consumers are more familiar with.

But does Motorola’s weakened position at least make it easier to gain in the US? Komiyama wasn’t so sure, and said he didn’t expect competition to change. Komiyama: “If Motorola disappears that’s one thing, but I don’t think [it will].”

Posted in: Companies, Motorola, Sony Ericsson


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Rafat Ali
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Matt Kapko
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Dianne See Morrison
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