Sony Ericsson today announced that they will be licensing Sagem handset designs for their low-end handsets. The agreement marks the first time Sony Ericsson has deferred to a ODM (original design manufacturer) rather than using in-house development resources for phones. The two companies also announced will jointly work on future phone development.
At this time, the agreement will only extend to low-end phones, possibly as Sony Ericsson attempts to increase its focus on the low-end market. Sony Ericsson currently is only selling one low-end phone in the United States, the J220a, which is available on prepaid for $9.99 (with free shipping) from AT&T Cingular.