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NewsGlobe: Today's News
Motorola buys 50% of UIQ from Sony Ericsson
Software developer to be run as joint venture
by Iain Morris
Mobile phone manufacturer Motorola has bought a 50 percent
stake in UIQ, the smartphone user-interface developer, from
rival Sony Ericsson.
The two manufacturers say they will run UIQ as a joint
venture “committed to the development of open operating
systems.” They do not disclose the terms of the deal.
Speaking at a press conference in London today, Sony
Ericsson CEO Miles Flint said he was keen to share the cost of
developing UIQ’s software.
Alain Mutricy, senior vice president of platform technology for
Motorola, said the deal would allow Motorola to enhance its
own product portfolio and represents a “positive for
developers investing in the [UIQ] platform.”
Both Sony Ericsson and Motorola say they want expand the
shareholder base of UIQ to include other handset vendors.
Scaling up
Johan Sandberg, the CEO of UIQ, said the involvement of
Motorola would help UIQ to “scale up”, although he was not
prepared to disclose targets for the number of devices in
circulation.
UIQ has grown rapidly since Sony Ericsson bought it from OS
developer Symbian in February this year. Today it employs
more than 350 staff, up from 142 when it changed owners.
The company has also recently opened new offices in London
and Budapest, although its headquarters remains in
Ronneby, Sweden.
Both Sony Ericsson and Motorola are keen to spur the
adoption of so-called smartphones — which aim to combine
the functionality of a phone with that of a PC.
Last week Sony Ericsson reported an 11 percent fall in pre-tax
profit to €384 million (US$546 million).
Some analysts blamed the shortfall on a drop in the average
selling price of a Sony Ericsson handset. The world’s fourth
largest handset manufacturer is expanding fast into emerging
markets, where most consumers opt for low-cost 2G devices.
Motorola, meanwhile, has been losing market share to
smaller rivals. Industry observers say it will have to improve
its portfolio if it is to retain its spot as the world’s second
biggest handset producer.
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