The two companies have signed an agreement on entry-level handsets

Mar 26, 2007 09:39 GMT  ·  By

Sagem has recently announced that it will be cooperating with Sony Ericsson, enabling the manufacturer to complete its entry level product offering as well as strengthen its position in this area of the market.

As usual, financial terms were not revealed. Sony Ericsson and Sagem have signed an agreement regarding entry-level GSM, GPRS and EDGE-capable mobile phones.

According to the agreement, Sagem is to license certain hardware and software technologies to Sony Ericsson and provide a number of Sony Ericsson branded mobile phones. Moreover, Sony Ericsson will also establish a development unit for entry-level handsets near Sagem's premises in Cergy, France in the future.

It's quite clear why Sony Ericsson would consider getting Sagem out of all mobile phone manufacturers to produce low-end mobile phones for them, because if there's one thing Sagem is really good at, it's developing affordable easy-to-use handsets. Actually, they're probably the best mobile phones you can get for such a small price tag, truly offering quality even though not a lot of features. While Sony Ericsson seem to have been doing quite well in producing entry-level phones on their own, a partnership with Sagem couldn't bring anything but advantages.

"We chose Sagem Communication because their software platforms are mature, scalable and flexible. In addition we were impressed with the quality and performance of their phones, which have been developed by a skilled workforce. Our co-operation with Sagem Communication will allow us to offer a mature range of phones right from the start," said Howard Lewis, Vice President and Head of PBU (Product Business Unit) Entry at Sony Ericsson.