Mobile equipment maker, Ericsson has threatened to pull out of its joint venture with Sony, Sony Ericsson.
The joint venture saw both companies focus on their strengths to offer stylish hi-spec phones which have included the P800 and others.
Ericsson's threat comes as the venture continues to pile up its losses.
Ericsson has faced difficult times recently as revenues plunged.
However, Ericsson embarked on a restructuring move. The company also recently announced that it does not expect a mass uptake of 3G in Europe before 2005