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Sun 1 Apr 2007 11:07 AM

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Sony Ericsson in entry-level handset tie-up with Sagem

Sony Ericsson will pitch its fortunes in the entry-level handset market after signing a licensing and original design manufacturer (ODM) deal with Sagem Communication.

Sony Ericsson will pitch its fortunes in the entry-level handset market after signing a licensing and original design manufacturer (ODM) deal with Sagem Communication.

The two companies will conduct ‘joint development activities' with Sagem providing Sony Ericsson with branded GSM, GPRS and EDGE units.

"We chose Sagem Communication because its software platforms are mature, scaleable and flexible," said Howard Lewis, vice president and head of product business unit entry and Sony Ericsson.

The terms of the deal state that Sony Ericsson will open a research and development facility dedicated to entry-level devices near Sagem's factory in Cergy, France.

"Our agreement is long-term and will highlight our future joint development efforts," said Thierry Buffenoir, deputy CEO of Sagem Communication.

The move represents a significant diversification in Sony Ericsson's strategy, as the joint venture between the respective Japanese and Swedish giants is more commonly associated with offering feature-rich handsets to the market, yielding high profit margins.

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