Any tie up between Sony and Ericsson will need to develop products to appeal to users in the European market, analysts said.
Ericsson, which said in January it will farm out its handset manufacturing to Flextronics International Ltd, has been hurt by slowing growth in mobile phone demand. The company last month said it will eliminate 3,300 jobs to help trim costs.
Ericsson has struggled with its phones in the past two and a half years, partly as it failed to introduce enough models to attract new users and because of delays in making more expensive handsets. The phone unit lost 24 billion kronor (US$2.4 billion) last year.
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