OXFORD, United Kingdom—With the first signs that European cell-phone operators are generating better revenues than expected, the major handset developers are gearing themselves up for better days after many months of cutbacks and financial gloom.
Most notable among the manufacturers is Philips Consumer Communications, which plans to launch a new range of cell phones at the 3GSM World Congress later this month, and even more surprising is the company’s claim that it expects the handset division to be profitable this year. Only last July the company said it would close its loss-making mobile-phone business, take a charge of e300 million (US$261.7 million), and move its research and development (R&D) activities into a joint venture controlled by China Electronics.
Further evidence of improving times came from Sony Ericsson with the announcement that it will follow Nokia by launching luxury cell phones based on its successful T68 model. The company said it will produce handsets, starting at e28,000 (US$24,400) each, studded with about 900 diamonds, along with rubies, sapphires, emeralds and black diamonds.
Meanwhile, Siemens said it expects a change in profile with its new high-end cell phones making up around 10 percent of sales in Germany in 2002, its low-end models making up roughly 40 percent to 50 percent, and mid-range models contributing around 30 percent to 35 percent.
