Ericsson drops handsets

Ericsson, the world's third biggest supplier of mobile phones, is to announce today that it is pulling out of handset manufacturing.

According to the Financial Times, the move is in a bid to slow its consumer product division's large losses. Other major handset manufacturers, including Motorola have contracted out some of the company's production. However, Ericsson will continue its research and development activities, and handsets will still carry the company's brand. Ericsson will present its full year figures later today and analysts are predicting a loss of at least SKr16bn (£1.1bn).