Sony bought Ericsson

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LONDON (Reuters) - Sony Corp is to take over its mobile phone joint venture with Ericsson for 1.05 billion euros ($1.5 billion), as it seeks to exploit its music and video to help it catch smartphone leaders such as Apple Inc.

The deal to buy out its Swedish partner will enable Sony to better integrate smartphones and other devices with its array of content, from its music label whose stars include Beyonce and Britney Spears, its movie studio whose current hits include Spider Man and Anonymous and its Playstation video games such as Legends of Norrah.

“Its the beginning of something which I think is quite magical,” Sony Chairman Sir Howard Stringer told a news conference in London. “We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment”.

Until now Sony’s tablets, games and other consumer electronics devices have been kept separate from the phones sold and created by Sony Ericsson.

“Sony is looking to do the same as Apple and meet users’ demands through linking various devices with similar interfaces and operating systems,” said analyst Nobuo Kurahashi of Mizuho Investors’ Securities in Tokyo.

“Smartphones look to become more important products for Sony … and they will probably become the main device people use to connect to the Internet.”

Smartphone sales have been surging since Apple launched its first iPhone in 2007 and despite a slowdown in the overall consumer electronics market, strong demand is set to continue.

“More and more people are watching content on smartphones. TV is not going to go away, but they watch it on smartphones and they watch it on tablets,” Stringer said.

STRUGGLES AHEAD

The deal will give Sony ownership of certain handset patents held by Ericsson and will enable it to cut costs in the Sony Ericsson business, with Stringer pointing to savings in operations, R&D and marketing.

The takeover of Sony Ericsson by the Japanese group had long been talked of and a source with knowledge of the matter told Reuters this month a deal was in the offing.

“Sony now has all the components to compete with Samsung and Apple. The big question now is … can it execute?,” said Pete Cunningham of consultancy Canalys, adding Japanese company takeovers in Europe and the United States had often struggled.

“Based on history I am sceptical, but I would not say it cannot be done,” he added.

Founded in 2001, Sony Ericsson employs some 7,500 and last year took around 2 percent of the global cellphone market with sales of 6.3 billion euros. Initially it thrived with an array of camera and music phones but it lost out in the smartphone race.

“Sony had to make this deal as it had run out of options, but integration challenges could prove to be a major hurdle,” said Ben Wood, head of research at consultancy CCS Insight.

“As a major consumer electronics player, lack of mobile assets had become a liability for Sony, particularly when compared with Samsung, whose telecommunication business creates nearly half of its profits,” he said.

Ericsson said the deal provides Sony with a broad intellectual property cross-licensing agreement covering all the Japanese company’s products and services, as well as ownership of five essential patent families relating to wireless handset technology.

Shares in Ericsson, which as a result of the deal increases its focus on the wireless network business in which it is the world’s largest manufacturer, were up 5 percent at 70 crowns by 1153 GMT. The STOXX Europe 600 technology index was up 3.4 percent.

Ericsson Chief Executive Hans Vestberg told Reuters the company would use the cash payment to strengthen its balance sheet and had no plans to pay it out to shareholders. ($1=0.724 euros)

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Source: http://news.yahoo.co…-065040713.html

So now we’ve just lost the best feature-phones manufacturer. Now Sony is gonna make over-priced iPhone clones, and put their useless branded crap on future phones… All major manufacturers are concentrating on smartphones, what about simple phones for simple people? Nobody seem to care… Other than that, Sony without Ericsson doesn’t sound good either.

Your thoughts?

No doubt sony will produce Pricy mobiles just their as Vaio laptops

[quote=“Upsilon, post:, topic:”]

Source: http://news.yahoo.co…-065040713.html

So now we’ve just lost the best feature-phones manufacturer. Now Sony is gonna make over-priced iPhone clones, and put their useless branded crap on future phones… All major manufacturers are concentrating on smartphones, what about simple phones for simple people? Nobody seem to care… Other than that, Sony without Ericsson doesn’t sound good either.

Your thoughts?

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Nobody wants to use Windows 95 now, similarly no body wants to use those old feature phones. Its called EVOLUTION!

[quote=", post:3, topic:15944"]

Nobody wants to use Windows 95 now, similarly no body wants to use those old feature phones. Its called EVOLUTION!

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Give me the Proof.

[quote=“blogger, post:4, topic:15944”]

Give me the Proof.

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If you are using Windows? what version you are using?

Everything is not about "Us". A LOT of people can't even understand a smartphone. Give your mother/father your latest iPhone (or whatever crap you're using) and see how he "uses" it...

[quote=“Upsilon, post:6, topic:15944”]

Everything is not about “Us”. A LOT of people can’t even understand a smartphone. Give your mother/father your latest iPhone (or whatever crap you’re using) and see how he “uses” it…

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ٖWell, elders even can’t operate Sony Ericsson’s feature phones, for them there are Nokia phones. (Do some research first you will know then). Anyway iPhone sure is crap but Android phones aren’t.

[quote=", post:5, topic:15944"]

If you are using Windows? what version you are using?

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What is the comparison between using Windows and using Smart Phone?

Sony gave some low budget phone in past, if someone remember back in 1999-2000. So we can't just say that they will give only high priced mobile but let's see.

http://www.gsmarena.com/sony-phones-7.php

But one thing I want to add that something is crap for me or you is just matter of choice. So I thought back in 2000 when I had my Panasonic gd93 that Nokia is crap but when I came to Nokia 3230 and then so on, I said Nokia is just best, then I bought a i-Mate SP3 and I was amazed by it's speed. But still Nokia was best. Then I moved to HTC and it looked everything is crap and HTC is best :) but now everything is best!

Not a good news

[quote=", post:7, topic:15944"]

ٖWell, elders even can’t operate Sony Ericsson’s feature phones, for them there are Nokia phones. (Do some research first you will know then). Anyway iPhone sure is crap but Android phones aren’t.

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Nokia is also concentrating on Smartphones, and especially since they’ve partnered with Microsoft, they’re certainly gonna make as many WP7+ phones as they can.

As for the “Android phones aren’t”, that’s just your opinion…

[quote=“blogger, post:8, topic:15944”]

What is the comparison between using Windows and using Smart Phone?

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I was trying to explain you the term Evolution, and i am not comparing Windows and Smartphones, The comparison is between Versions of Windows and different kinds of phones. :angry:

[quote=“Upsilon, post:11, topic:15944”]

Nokia is also concentrating on Smartphones, and especially since they’ve partnered with Microsoft, they’re certainly gonna make as many WP7+ phones as they can.

As for the “Android phones aren’t”, that’s just your opinion…

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Nokia is concentrating on Smartphones because they never had in the past. But that doesn’t mean they are going to stop manufacturing the Pakistan’s favorite low end phones.

All I can say is "good for sony"....

Actually Sony Ericsson was first to introduce affordable camera phones in Asian markets (remember k500i? k700i? w800i?) . But couldn't sustain that position due to terrible choice of sticking with joysticks as the navigation devices which wore out quickly and required constant changing or cleaning. Otherwise Sony Ericsson phones were very good. Then Nokia came back and outsourced all its assembly to China to bring down their prices and come out the winner once again. I remember i bought a Sony Ericsson j300i for like Rs. 5,000 in 2006 since it was very hard to find and the shopkeeper had one last piece of it.

Fast forward to today. I think Sony made a smart move since its really about developing an ecosystem these days and its seems like Sony is going to try and built a cohesive ecosystem around its phone, PS3,TVs and its online content offerings. MS is doing the same with its WindowsPhones, Xbox, Windows and its Zune marketplace.

[quote=", post:13, topic:15944"]

Nokia is concentrating on Smartphones because they never had in the past.

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Really? Ok… Lets go back a few years, lets take a look at 2003-2007, what do you see? I sure as hell see Nokia dominating the smartphone market…

In any case, By next year, we’ll know for sure if it was a good move or not.

[quote=“Upsilon, post:16, topic:15944”]

Really? Ok… Lets go back a few years, lets take a look at 2003-2007, what do you see? I sure as hell see Nokia dominating the smartphone market…

In any case, By next year, we’ll know for sure if it was a good move or not.

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Smartphone’s definition has been changed a lot since then. All those Nokia’s “Smartphones” are now called JUNK! :D

Well at least this will not affect Pakistan, As Sony Ericsson officially closed its operations in Pakistan couple of years back.

[quote=", post:3, topic:15944"]

Nobody wants to use Windows 95 now, similarly no body wants to use those old feature phones. Its called EVOLUTION!

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Yes you are right no body is using windows 95. But alot are using windows xp even when windows 8 is available…

In the same way nobody is using nokia 3310… But people are using phones like samsung guru, nokia 1203, nokia 1616,… infact i am also using nokia 1616… How many are using iphones here?

[quote=“Waqar_shah, post:18, topic:15944”]

Yes you are right no body is using windows 95. But alot are using windows xp even when windows 8 is available…

In the same way nobody is using nokia 3310… But people are using phones like samsung guru, nokia 1203, nokia 1616,… infact i am also using nokia 1616… How many are using iphones here?

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I am too using Nokia 1616 as it easily fits inside my pocket with keys, wallet etc. :rolleyes:

The basic purpose of cell phone is connectivity with people and it is fulfilling my needs.

i love sony ericsson mobiles .