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With ST-Ericsson, the handset component venture, Mr. Vestberg said Ericsson had was reviewing the company's business strategy and intended to return the venture to profitability "as soon as possible".
CEO Nick Muir's argument is that handset component costs have been commoditized so that when coupled with a lean startup philosophy it's able to deliver 'innovation' in the form of a range of affordable yet acceptable (in terms of performance and design) smartphones to budget-conscious customers.
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Ericsson's earnings were also weighed down by continued losses at ST-Ericsson, its chip and handset components venture with the Swiss company STMicroelectronics.
As part of the transaction, Nokia said it would transfer 1,100 employees in Finland, Denmark, India and Britain to Renesas, a maker of handset components based in Tokyo.
As part of that review, ST-Ericsson said it was looking for a buyer for its business that develops handset components for Wi-Fi and other short-range connection technologies.
The Mobile Handset Components & Assembly Service segment engages in the manufacture and sale of mobile handset components such as housing, keypads and provision of assembly services.
It operates its business through four segments: Rechargeable Battery & Other Products, Mobile Handset Components & Assembly Service, Automobiles & Related Products, and Other.
The company also manufactures and sells automobiles and related products, handset components, LCD and other electronic products.
"In both the handset and component industries we have been living with intense competition every day," he says.
Silent Circle says the handset is the first component of its cloud-based Enterprise Privacy Platform — which comprises a suite of services, software and devices all aimed at appealing to enterprise users by baking in privacy.
This week, Qualcomm started getting serious regulatory heat when the Federal Trade Commission filed charges against the chipmaker, accusing it of anticompetitive tactics designed to shut competitors out from supplying components to handset companies.
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