Ericsson revealed the UK and Germany were the only bright spots in its European sales in the third quarter, as it announced a 13 per cent drop in overall net income compared to the same period in 2013.
Ericsson is exiting the wireless-modem business and will most likely slash about 1,000 jobs as a result. The decision comes as pricing pressure builds in the stand-alone-modem business and more device makers choose to buy system-on-a-chip solutions with modems married to application processors, which Ericsson does not offer.
Ericsson is consulting with workers unions and representatives over the lay off of around 1,000 staff from its modems business after announcing it will quit the sector in favour of an increased focus on its radio networks unit.
Google's effort to move into the TV space is getting a boost from chipmaker STMicroelectronics, which has upgraded its Software Development Kit 2 (SSDK2) to permit the development of Android-compliant devices. This includes supporting the latest Google services for TV, the chipmaker said in a press release.
Ericsson and STMicroelectronics agreed to shut down their unprofitable ST-Ericsson chipset joint venture and split up its assets, a move that will lead to a net loss of 1,600 jobs.
Ericsson and STMicroelectronics have tried and failed over the past three months to find a buyer for their struggling ST-Ericsson chipset joint venture, according to a Bloomberg report.
Ericsson said it will take a $1.2 billion charge in the fourth quarter related to its money-losing chipset joint venture with STMicroelectronics, ST-Ericsson, as it explores future options for the company.
STMicroelectronics said it will sell off its stake in ST-Ericsson, the struggling chipset maker that STMicro jointly owns with Ericsson. STMicro said that as a result of strategic changes it is making it will exit its stake in the venture after a transition period, which is expected to end during the third quarter of 2013.
Ericsson and STMicroelectronics appointed JP Morgan to advise on the options they have for their loss-making semiconductor venture, ST-Ericsson.
ST-Ericsson said it would cut 1,700 jobs and transfer the development of its standalone applications processor business to one of its parent companies, STMicroelectronics, in a bid to change the