Summary:

The two nordic cell phone giants are a study in contrasts. Ericsson is the turnaround story of the year according to some, as it has aligned its business with the new realities of the cell phone handset and infrastructure business. Ericsson, having realized earlier that handsets […]

The two nordic cell phone giants are a study in contrasts. Ericsson is the turnaround story of the year according to some, as it has aligned its business with the new realities of the cell phone handset and infrastructure business. Ericsson, having realized earlier that handsets while being the engine of topline growth, are not as much a factor when it comes to the bottom line. The handset price wars are going to only escalate and will take down everything that comes in the way of this tsunami. “Ericsson has concentrated on bringing down costs and increasing sales. It’s the double-barrelled effect of those efforts that brought such strong results,” Haakon Wranne, an analyst with Fischer Partners in Stockholm, told AFP.”Nokia simply hasn’t done enough to develop enough good phone models when it comes to new things like camera phones and clamshell phones. It really needs to get its phone portfolio in order.”

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