Swedish company Ericsson had been making mobile cell phones since the 1980s, their first very handheld device being the Hotline Pocket introduced in 1987.
In the United States, Ericsson partnered with General Electric in the early nineties as Ericsson Mobile Communications (ECS), primarily to establish a US presence and brand recognition.
General Electric eventually left the joint venture.

Ericsson had decided to obtain chips for its phones from a single source—a Philips facility in New Mexico.
On March 17, 2000, a fire at the Philips factory contaminated the sterile facility.
Philips assured Ericsson and Nokia (their other major customer) that production would be delayed for no more than a week.
When it became clear that production would actually be compromised for months, Ericsson was faced with a serious shortage.
Nokia had already begun to obtain parts from alternative sources, but Ericsson's position was much worse as production of current models and the launch of new ones was held up.

Ericsson, which had been in the mobile phone market for decades, and was the world's third largest cellular telephone handset maker at the time behind Nokia and Motorola, was struggling with huge losses and decreasing market share.
This was partly due to this fire as well as its inability to produce cheaper phones or fashionably-designed phones like Nokia managed to do.
Speculation began about a possible sale by Ericsson of its mobile phone division, but the company's president, Kurt Hellström, said it had no plans to do so.
Hellström said, "Mobile phones are really a core business for Ericsson.
We wouldn't be as successful (in networks) if we didn't have phones".

Sony was a marginal player in the worldwide mobile phone market with a share of less than 1 percent in 2000.
By August 2001, the two companies had finalised the terms of the merger announced in April.
Ericsson contributed a majority of the Ericsson Mobile Communications company, excluding a minor part spun off as Ericsson Mobile Platforms.
Sony contributed its entire handset division.
The company was to have an initial workforce of 3,500 employees.
Swedish company Ericsson had been making mobile cell phones since the 1980s, their first very handheld device being the Hotline Pocket introduced in 1987. In the United States, Ericsson partnered with General Electric in the early nineties as Ericsson Mobile Communications (ECS), primarily to establish a US presence and brand recognition. General Electric eventually left the joint venture.
Ericsson had decided to obtain chips for its phones from a single source—a Philips facility in New Mexico. On March 17, 2000, a fire at the Philips factory contaminated the sterile facility. Philips assured Ericsson and Nokia (their other major customer) that production would be delayed for no more than a week. When it became clear that production would actually be compromised for months, Ericsson was faced with a serious shortage. Nokia had already begun to obtain parts from alternative sources, but Ericsson's position was much worse as production of current models and the launch of new ones was held up.
Ericsson, which had been in the mobile phone market for decades, and was the world's third largest cellular telephone handset maker at the time behind Nokia and Motorola, was struggling with huge losses and decreasing market share. This was partly due to this fire as well as its inability to produce cheaper phones or fashionably-designed phones like Nokia managed to do. Speculation began about a possible sale by Ericsson of its mobile phone division, but the company's president, Kurt Hellström, said it had no plans to do so. Hellström said, "Mobile phones are really a core business for Ericsson. We wouldn't be as successful (in networks) if we didn't have phones".
Sony was a marginal player in the worldwide mobile phone market with a share of less than 1 percent in 2000. By August 2001, the two companies had finalised the terms of the merger announced in April. Ericsson contributed a majority of the Ericsson Mobile Communications company, excluding a minor part spun off as Ericsson Mobile Platforms. Sony contributed its entire handset division. The company was to have an initial workforce of 3,500 employees.
Sony Mobile