Ericsson, Sony in Talks on Mobile-Phone Deal

Ericsson, the No. 3 mobile-phone maker, plans to develop and sell phones with Sony Corp. as it seeks to stem losses. The Swedish company, which already has agreed to farm out manufacturing of its mobile phones, will combine its cell-phone unit with Sony’s in a Britain-based venture, Japanese media reported. Sony and Ericsson confirmed that they are in talks though declined to provide details. Ericsson Chief Executive Kurt Hellstroem has rejected calls from investors to exit handsets altogether because the company needs the phones to help win orders for its most profitable business, selling the equipment for phone networks. An alliance with Sony would help it improve design and marketing, areas where it lags its biggest rival, Nokia Corp., investors said. Together, Ericsson and Sony would have about 12% of the global handset market, still trailing Nokia’s 31% and Motorola Inc.’s 15%.