Ericsson's fourth-quarter net income will suffer a non-cash hit of 8 billion Swedish kronor (US$1.22 billion) related to a writedown in the value of its 50 percent stake in chip vendor ST-Ericsson. Ericsson's current partner in the venture, STMicroelectronics NV, is quitting the business, but Ericsson says it has no plans to take full control of ST-Ericsson, though it does still see a future for the loss-making company. To that end, Ericsson expects the implementation of its "strategic options" related to the chip company will cost an additional SEK3 billion ($458 million) during the coming year.
I think clearly this is the time of consolidation...Time to focus on ur core strength and back off from the loss making proposition. I think E/// is in right path to consolidate its strentgh..They got out of Handset business last year and now is the time to get out from chip business as well...Vinay, New delhi
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