Sat, Feb 03, 2001 - Page 17 News List

GVC president says design capability won Ericsson deal

By Dan Nystedt  /  STAFF REPORTER

Ericsson-Taiwan president Jan Signell cited credible design work and the ability of local manufacturers to produce mobile phones at a low cost as key reasons Ericsson chose GVC Corp (致福) as a new Taiwan partner. He also expects his company make "lots of new announcements" with regard to mobile handset outsourcing in the coming year.

GVC and Ericsson inked an agreement earlier this week to work together in mobile phones. The Swedish phone giant decided last week to outsource mobile phone manufacturing after suffering US$1.7 billion in losses last year in that portion of its business. Analysts say GVC may make as many as 5 million GPRS phones for Ericsson this year.

GVC will design and manufacture mobile phones for general packet radio service, a second-generation mobile Internet system. Local media reports placed the deal at 5 million handsets this year.

Ericsson sold 43.3 million handsets last year, taking nearly 10 percent of the world's mobile-phone market. The company is the world's third-largest handset seller behind Nokia and Motorola.

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