In its effort to restore profitability in its consumer division Ericsson has established an organization in Malaysia, headed by Johan Paulsson, to manage the entry-level segment.
The new organization is to combine the knowledge of low-cost production at high quality in Ericsson’s Asian factories and partners together with the system and software knowledge in GSM and 3G in Ericsson’s European R&D centers. This combination will give increased focus to get the entry-level products to the market in the right time. The first products will be launched during 2001.
In the future, Ericsson will use more partners to produce mobile phones in order to streamline manufacturing and reduce cost levels.
With more than 100,000 employees in 140 countries, Ericsson aims to simplify communications for customers all over the world.