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CEO Miles Flint announced at a press conference held with India's communications minister Dayanidhi Maran in Chennai that India was one of the fastest growing markets in the world and a priority market for Sony Ericsson with 105 million users of GSM mobile telephones.

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Ericsson contributed a majority of the Ericsson Mobile Communications company, excluding a minor part spun off as Ericsson Mobile Platforms. The company was to have an initial workforce of 3,500 employees.

Sony Ericsson's strategy was to release new models capable of digital photography as well as other multimedia capabilities such as downloading and viewing video clips and personal information management capabilities.

The women's pro tennis circuit was renamed the Sony Ericsson WTA Tour.

Just over a month later on June 7, it announced sponsorship of West Indian batsmen Chris Gayle and Ramnaresh Sarwan.

To curtail the losses, it considered outsourcing production to Asian companies that could produce the handsets for lower costs.