Siemens says Ericsson woes won't deter it

Whilst rival Ericsson radically restructures its ailing mobile phone business, Siemens says it's making profits and can continue to grab market share.

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By  David Ingham Published  January 30, 2001

Siemens executives said today that the company remains completely committed to the mobile phone sector, despite problems at rival Ericsson.

Although Siemens has seen rapid growth in mobile phone sales, the company’s market share is still close to that of Siemens, which confirmed this week that its mobile phone business is losing money.

In response to the poor performance, Ericsson is outsourcing mobile phone manufacturing to Flextronics.

The response from Siemens was that it would remain focused on its own business and not be deterred by the problems of rivals.

“We are making profits on mobile phones,” said Asim Sukhera, area manager, Siemens mobile phones. “We have to continue to focus on what we have achieved so far.”

Sukhera said that Siemens sold 320,000 mobile phones in the year 2000 across the Middle East region. He believes the company is now second to Nokia in most countries and may even be number one in some smaller countries.

Sukhera was speaking at the launch of the SL45, a high end mobile phone that includes an MP3 player and digital voice recorder. The phone retails for around AED 2000.

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