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Motorola buys 50% of UIQ from Sony Ericsson

Software developer to be run as joint venture

      

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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