About Sony Ericsson. Sony Ericsson: the history of the creation and disappearance of the brand
Sony Ericsson Mobile Communications is a Swedish telecommunications company that manufactures mobile phones and accessories for them under the Sony Ericsson brand. The headquarters is located in London, but the company is registered in Sweden.
Sony Ericsson Mobile Communications AB was founded around the same time as Gorenje in 2001 as a joint venture between Swedish telecommunications manufacturer Ericsson and Japanese electronics manufacturer Sony.
Until 2001, each of the companies separately issued whole line GSM-terminals, which were worthy representatives of their segments, and sometimes had completely unique functions. Ericsson devices traditionally had a strong radio part and attractive design, and Sony phones are excellent multimedia performance and original solutions in the field of ergonomics (remember that it was Sony's J-series that first received polyphony and Jog-Dial - a navigation wheel that simplified communication with devices).
Despite the good phones produced by these companies separately, competition in this market has increased greatly by the beginning of the 21st century. Against the backdrop of Nokia's new products, Ericsson's devices looked dull, external antennas, which are ubiquitous in Swedish phones, have become a relic of the past for users. The lines of Sony and Ericsson phones required a major update, inside the companies they realized that the technological gap of the Finnish concern would eventually turn into an insurmountable abyss. Explicit losses demanded immediate action, and in 2001 there was a merger of the mobile divisions of the two companies.
The first joint products were introduced in 2002. Throughout its existence, the company has released a large range of phones, many of which have become hits in their segment.
Sony Ericsson now has about 5,000 employees worldwide. The company carries out Scientific research, design work and product development, marketing, promotion, sales and customer service.
This manufacturer occupies a very special place among other companies. Many innovations, a number of products that are significant for the entire mobile market - all this has shaped the corresponding attitude of users. A rare manufacturer can boast of such devoted fans. Moreover, their expectations are fully rewarded by the regular release of cult models, bestsellers.
Until this year, Sony Ericsson could boast of a unique strategy for the release of new models. It consisted in creating point, maximally verified solutions. The expansion of the product line due to devices of the same type on the platform, differing in design and form factor, was minimal, unlike some other manufacturers. One of the reasons was the lack of production capacity. Indeed, by the standards of such giants as Nokia or Motorola, Sony Ericsson was a rather small player.
This year the situation has changed. The lineup the company expanded as much as possible. There are more devices for different audiences of users. The company began to grow, increase its presence in the mobile device market.
Feature of Sony Ericsson emphasizes one more circumstance. This is perhaps the only example of a successful association of mobile phone manufacturers. Cooperation of other companies ended less successfully. In addition to some representatives of the so-called second tier, it is enough to recall the sad experience of BenQ-Siemens. Although each such case has its own nuances.
It is worth noting that Sony Ericsson is the youngest of the market leaders, although each of the founding companies has a long history.
Which will become the technological basis for digitalization big business on the territory of the country. Integrator partner - Ericsson. Read more.
2017: New CEO - Sebastian Tolstoy
2015: Decline in sales in Russia by 30%
2014: Revenue of Ericsson in Russia exceeded $800 million
At the end of 2014, the largest rise in sales of Ericsson (by 22%) was shown by the Middle East. In the Central and Western Europe telecommunications equipment maker's revenue jumped 7%, in Northern Europe and Central Asia - 6%.
Ericsson refers to Russia as the last region, where the company has made good money due to the growing investments of operators in mobile broadband networks. In 2014 revenue of the Swedish vendor in Northern Europe and Central Asia was measured by 12.4 billion crowns ($1.5 billion), where income in the amount of slightly more than $800 million fell to the share of the Russian market.
2012: Dmitry Maselsky is the head of the company in Russia
At the end of September, 2012 it became known of Dmitry Maselsky's appointment to a position of the CEO of representation of Ericsson, Russia. he replaced Maria Radke in this position , who will continue to work for the company as Chief Financial Officer of Ericsson in the Northern Europe and Central Asia region .
2011
Transfer of the platform for the creation of System 112 to Sphere CJSC
As of 2011, almost every third mobile call in Russia is carried out with the help of certain Ericsson technologies. Ericsson switches serve over 40% of all national and international telephone traffic in Russia. Ericsson is a key provider of advanced solutions for the booming ICT sector in Russia.
Agreement with Skolkovo
2010: 400 employees in Russia
For 2010 in three regional representations of Ericsson company in Russia (which are in Moscow, St. Petersburg and Krasnoyarsk) more than 400 employees work.
Ericsson (Telefonaktiebolaget L. M. Ericsson) (in Russian it is pronounced: Ericsson listen)) is a Swedish telecommunications equipment manufacturer. The headquarters is in Stockholm.
History
Lars Magnus Ericsson
Lars Magnus Eriksson began his career as a simple worker, at the age of 15 he went to Norway to work in a mine and learn blacksmithing, and after a year and a half he becomes a master blacksmith. Six years later he returns to Sweden and settles in Stockholm. On April 1, Ericsson and his former Öllers & Co colleague Karl Andersson founded the LM Ericsson & Co (LME) electromechanical workshop to repair telephones and signaling equipment. Soon there will be an own device - desk phone with magneto and horn. Telephone sets were the main competitor American company Bell. In 1881, the Swedish national telephone association Telegrafverket was created, which announced a competition for the supply of equipment between the Bell Company and the LME workshop. Ericsson, with better and cheaper equipment, wins. Over the next five years, 64 out of 93 cities in Sweden were equipped with LME telephones. Soon Telegrafverket opens its own production, and sales of Ericsson products are falling sharply. In a short time, the export of telephone equipment to Norway, Denmark, Finland, Australia and New Zealand was established. Shanghai ordered a telephone exchange. An office is opened in New York and an order for the installation of telephones in Mexico City is received. In Russia, the company telephones Kyiv (1893), Kharkov (1896), Rostov (1897), Riga, Kazan and Tiflis (). In 1897, the Ericsson factory was opened in St. Petersburg, which was built over the course of two years by the St. Petersburg architect K. Schmidt. In 1919 the factory was nationalized, see Krasnaya Zarya.
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Owners and management
The largest owners of voting shares are Investor AB (19.42%), Industrivarden AB (13.28%), SHB Pensionsstiftelse (3%) companies. Jacob Wallenberg - Chairman of Investor AB. Capitalization of the company for June 25, 2007 on NASDAQ - $63.16 billion.
The chairman of the board of directors of the company is Leif Johansson. The President is Hans Westberg.
Activity
The main business of the company is the production of equipment for networks wireless communication. The company's equipment has been used to build communication networks in 180 countries around the world. Previously, Ericsson also produced mobile phones, but then concentrated on the production of equipment for communication networks, transferring the production of telephone sets to a joint venture formed in 2001 with the Japanese company Sony - Sony Ericsson Mobile Communications.
Activities
Ericsson conducts its business in 8 directions, developing its solutions and providing various services:
- fixed networks and converged solutions (transport and radio relay networks, network edge routers, as well as services for the design and deployment of networks, including converged ones)
- mobile broadband access (development of solutions for mobile communications, as well as services for the deployment and optimization of networks)
- communication services (solutions for IMS architecture, platform solutions for deploying various communication services)
- applications for private and business users (development of special software solutions and applications)
- support systems for operating activities and business processes (systems for automating the provision of services, consumer behavior analysis, billing, billing, etc.)
- technological outsourcing services for telecom operators and other companies (in other words, network and/or technological infrastructure management)
- technologies for television and the media industry (systems for hybrid television, "multi-screen" (with signal transmission to several types of devices) and interactive television)
- infrastructure solutions ( various solutions M2M, solutions for monitoring and managing the state of infrastructure elements in various industries: housing and communal services, electric power and oil and gas, including for emergency systems and solutions for the protection of territories and borders)
Performance indicators
The company's revenue for 2012 - SEK 227.8 billion, operating profit - SEK 14.5 billion.
The company's revenue for 2011 - SEK 226.9 billion (an increase of 12%, in 2010 - SEK 203.3 billion; in 2009 - SEK 206.48 billion), net profit - SEK 12.6 billion (an increase of 12% , in 2010 in SEK 11.2 billion; in 2009 - SEK 4.1 billion), operating profit - 21.7 billion (an increase of 23%, in 2009 - SEK 17.7 billion) .
The company's revenue for 2008 - SEK 208.9 billion or $ 31.6 billion (an increase of 11%, in 2007 - SEK 187.8 billion), net profit - SEK 11.7 billion or $ 1.8 billion (a drop of 48 %, in 2007 - SEK 22.1 billion), operating profit - 23.9 billion or $ 3.62 billion (a drop of 22%, in 2007 - SEK 30.6 billion) .
The company's revenue for 2006 was $25.7 billion, operating profit was $5.2 billion, and net profit was $3.8 billion.
Ericsson in Russia
IN Soviet time Ericsson equipment in the USSR could not be used without additional adaptation of interfaces and certification. Therefore, in the 1960s, the Nikola Tesla company from Croatia developed new interfaces and produced equipment under license from Ericsson for the RSFSR and other republics. In 1980, as a technical support for the XXII Summer Olympic Games in Moscow Ericsson installed one of the largest telex stations AXB-20 at the Central Telegraph Station. In 1989, AXE-10 exchanges were ordered and the first of these were installed in Leningrad.
After the collapse of the USSR, already in 1994, the company opened a permanent representative office in Moscow at ul. March 8, d. 12. Opened in 1996 The educational center Ericsson at the Moscow Technical University of Communications and Informatics (MTUSI). In 2011, on April 27, Ericsson signed an agreement at a meeting of the prime ministers of Russia and Sweden, securing the company's intention to become a partner of the Skolkovo Foundation. August 3, 2011 Ericsson became a key partner of Skolkovo by signing an agreement that defined the framework for cooperation between the parties. Under the agreement, the company will support the fund's projects based on the Ericsson Networked Society Lab.
The head of the company in Russia and the president of the territorial division in Northern Europe and Central Asia is Robert Pushkarich (since October). Previously, the region was called "Eastern Europe and central Asia” and was renamed in connection with the new territorial division.
Notes
- Ericsson History. The Ericsson story Archived March 10, 2010. // ericsson.com (Retrieved May 12, 2010)(English)
Gadget manufacturers
Ericsson is known as a Swedish multinational provider of communications technology and related services. In addition, the firm is working on software and services for various industries and mobile operators.The company was founded in 1876 by Lars Magnus Eriksson, an inventor and entrepreneur. Its headquarters is located in the Swedish capital. By 2013, she has worked in more than one hundred and eighty countries, including Japan, UK, USA, China and so on.
Lars Magnus first connected his life with phones in his youth. He worked for a firm that made telegraph equipment for the Swedish government agency Telegrafverket. In 1876, at the age of thirty, he opened a telegraph repair shop with his friend Carl Johan Andersson. It was located in the center of Stockholm on the main shopping street. The workshop was engaged in the repair of foreign-made phones. Within two years, Ericsson will produce and sell its own telephone equipment. There will be nothing innovative in these phones, since most of all these inventions were previously made in the USA. In 1978, Lars will conclude an agreement on the supply of telephones with a Swedish telecom operator.
Magnus Eriksson was born in the province of Värmland and grew up in the small village of Vegerbol, located between the cities of Arvika and Karlstad. When he was twelve years old, his father, who forced him to look for work as a miner, died. Lars had to work until he saved up enough money to leave the village and move to Stockholm in 1867. For the next six years he worked for telegraph equipment manufacturers Öllers & Co. Thanks to his skills, Eriksson was even awarded two government scholarships to study abroad (between 1872 and 1875). One of the companies he worked for was Siemens & Halske.
On his return to Sweden in 1876, he founded a small workshop with Karl Johan Andersson, with whom he had worked together at Öllers & Co. It was here that Lars began to study phones from Siemens and Bell, creating copies of them in his own image. This continued until 1883 when a partnership with Henrik Tore Cedergen began and the firm began to grow into a corporation.
In 1900, Lars Magnus retired from Ericsson at the age of fifty-four. He retains his share in the company until 1905, after which he sells all shares. Eriksson himself said that he had always been a demanding person. He did not like publicity and public attention to his person, and even more so he did not want to be idealized. Nevertheless, Lars was respected by his employees. He was a skeptic and a man cautious in business. It is noteworthy that Lars was against patents, especially since many of his products could not be created if the patent law worked effectively. When his phones were copied by Norwegian companies, he did not care - especially since he himself copied Siemens products. In addition, Lars did not believe in the mass market of mobile devices from the very beginning. Phones were seen more as an idle entertainment, a toy.
Lars Magnus died in 1926 and was buried in Botkirk. At his insistent request, a tombstone was not even installed on the grave.
Interesting fact: In 1978, Ericsson was hired by a local phone importer to work on modifications to some Bell phones. This prompted him to purchase several Siemens machines and study the technology further. In other words, it was this event that became, perhaps, the most significant, and inspired Lars to the enterprise of his life. He improved the devices of Bell and Siemens & Halske, making them of higher quality. This was used by new telephone companies (for example, Rikstelefon) because they could save on service costs. In the end, Lars began to produce his own telephones, in many ways the prototype of Siemens, and work on the first products was completed in 1879.
Ericsson became the main supplier of telephone equipment to Scandinavia. The factory could not keep up with demand, and therefore its specialists were engaged in carpentry and metalworking. Most of the raw materials were imported, and in the following decades the company acquired several firms to provide everything needed - copper, wire, ebonite and magnetic steel. With the expansion of the Stockholm telephone network, Ericsson became a full-fledged telephone company. However, when Bell acquired the largest network in Stockholm, they were only allowed to use their own phones. So, Ericsson phones were supplied mainly to the Free Telephone Association of Sweden and other Nordic countries. Since Bell could no longer sell equipment to competitors, they formed an alliance with Ericsson to supply equipment for the new telephone network. Much later, in 1918, they set up the telecommunications company Allmänna Telefonaktiebolaget LM Ericsson.
In 1884, a technician named Anton Aven of Stockholms Allmänna Telefonaktiebolag combined the speaker and horn of a (at the time) standard telephone into a handset. The invention was actively used by exchange operators who needed one free hand in the process of communicating with buyers. Ericsson became interested in this idea and used it in his products, starting with a phone model called The Dachshund.
In the late 1890s, production began to pick up and the Swedish market was very saturated. Erickson has expanded and expanded into foreign markets through a number of agents. The early markets were the English and Russian markets. This eventually led to the opening of factories in these countries. The appearance of these factories improved the chances of obtaining local contracts, partly because the Swedish factory could not provide the company with everything it needed. For some time, Ericsson's largest customer was the National Telephone Company. She also constantly used the company's equipment. By 1897 Britain was responsible for 28% of Ericsson's sales. Other Nordic countries also became customers of the company, inspired by the growth of telephone services in Sweden. By the end of the 1890s New Zealand and Australia were Ericsson's largest non-European market.
Unfortunately, despite all its successes, the company had not been able to achieve success in the United States by that time. Lars retired in 1901. Despite everything, he ignored the growth of automatic telephony in the United States, focusing on something else. The first such telephone was produced in 1921, although sales of early automatic equipment were slow until they established their place in the world market. Telephone sets of that time were different simple design and finishes, but many of the early landline rotary telephones in Ericsson's catalogs also became electronic icons.
The First World War, the Great Depression that followed, and the loss of Russian assets following the revolution slowed down the company's development significantly, and also limited sales in countries like Australia. The acquisition of other related companies has put significant pressure on Ericsson's finances. In 1925 Carl Frederik Winkrantz takes control of the company by acquiring the majority of its shares. The company is named Telefon AB LM Ericsson.
Erickson was saved from bankruptcy and closure thanks to banks, as well as government support. Marcus Wallenberg Jr. made a deal with several Swedish banks for the financial recovery of Ericsson. Some of these banks were controlled by the Wallenberg family. In 1960, the same family also made a deal with ITT to buy shares in Ericsson and the company has been controlled by them ever since.
In the 1920s and 1930s, many of the world's telephone markets received government support. The defragmented systems grew over the years and were integrated and leased to a single company. Other major telephone companies had exactly the same goal.
After the Great Depression, sales resumed, but the company was no longer able to achieve the same market success that it had at the turn of the century. Although Ericsson still made a range of phones, switching equipment was becoming more important. After the introduction of football sponsorship in the 1980s, the company also sponsored two English football clubs in the 1990s, Brentford and Queen Park Rangers.
Ericsson introduced its first fully automatic mobile telephone system in the world, the MTA, in 1956. In addition, she was one of the first to release a speakerphone in 1960. Ericofon appeared in 1954. The company's switching equipment has been used by telephone administrations in many countries, and the impact is still being felt in areas such as mobile telephony.
In the 1990s, the Internet emerged and this marked a new world for telecommunications. Unfortunately, Ericsson was in no hurry to develop in this area, and therefore noticeably lagged behind in the field of IP technologies. However, in 1995, the company created a project to introduce the Internet into the world, and also formed the Infocom Systems business (at the junction of fixed-line and information technologies). CEO The company in its annual report for 1996 indicated that it planned to expand all three business areas (mobile systems, telephones, terminals).
The continued growth of the GSM standard, which is gradually becoming the de facto world standard, combined with the strengthening of Ericsson's position in relation to other mobile standards (D-AMPS and PDC), meant that by the beginning of 1997, Ericsson had an estimated 40 % share in the global mobile market, as well as about 54 million subscribers. Chip companies and Telecom worked feverishly in the 1990s to bring Internet access to mobile devices. Early versions like WAP used packet data over existing network GSM, in a form known as GPRS, but these services were still in their infancy and did not achieve much market success. Meanwhile, the International Telecommunication Union has prepared technical requirements to a 3G mobile service that included several various technologies. Ericsson also intended to use WCDMA (a format based on the GSM standard) and began testing the technology in 1996.
Ericsson becomes a leading player in the mobile device industry, sharing first place with Motorola and Nokia by 1997. Various services become increasingly important. The next few years were marked by incredible hype around the potential to use mobile Internet. Operators of many developed countries(USA, Germany, UK) were spending most of their trading capital on getting a 3G license and couldn't afford new networks. The volume of orders expected by Ericsson and other companies was very disappointing, and this led to a whole wave of staff cuts. During 2002, operators' sales will decrease by about 50%. Mobile devices, once a promising business industry, are becoming a liability. A fire at a Philips chip factory in New Mexico in the spring of 2000, caused by serious disruption in the production process, caused irreparable damage to Ericsson's telephone hopes. Mobile devices will be spun off in a joint venture with Sony and Sony Ericsson MC in 2001. This will be followed by a series of cycles of restructuring and refinancing. Job losses were huge: in 2001 alone, the number of employees fell from 107,000 to 85,000. By the following year, the figure had increased to 20,000, and so on. As a result, the company is on the brink, as the mobile Internet is still starting to gain momentum.
2003-2010 was marked by a period of recovery and growth. This happened thanks to the advent of the real mobile Internet. In 2003, 3G services are launched and consumers begin to actively use the Internet from their phones. The company supplied GSM-¬-equipment to a number of major operators and played a pioneering role in the emerging 3G standards and related technologies. This has become a prerequisite for many qualitative changes in future.
The following years were associated with many acquisitions and acquisitions. In autumn 2013, Ericsson completed the acquisition of the Mediaroom business. A year later, the company acquired a majority stake in Apcera.
Ericsson's mobile device business merged into a joint venture with Sony in 2001. New company was named Sony Ericsson.
Models of the GA, GF, GH, T, SH, A, PF, R and so on line were sold under the Ericsson trademark.
