How a century of telephone expertise doomed Ericsson [telecom]

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The mobile phone industry is used to vendors flaming out, sometimes just a couple of years after companies peak. Yet few handset companies have self-destructed as spectacularly as Ericsson -- particularly considering its pedigree in telephony.

During the summer of 1997, Ericsson spent a few months as the No.1 mobile phone brand in the world, buoyed by the early success of its brand new miniature phone called the 788. Ericsson's global market share briefly spiked to 27% around the same time Motorola's long decline finally cost the company its global leadership position. Nokia was rapidly gaining ground, but had not yet pulled decisively ahead of its two main rivals.

For a brief moment, it looked like Ericsson might be able to retain its position as the world's No.1 mobile phone brand. Yet just four years later, Ericsson was forced into a merger with Sony's handset unit.