Sony planning Ericsson takeover
Monday, October 10, 2011 - 11:09:47
Sony Ericsson smartphones have had their ups and downs but are very much ascendant following the focus on Android handsets. Now Sony is looking to snap up its partner to bring all of its skill and expertise in-house in a large takeover deal.
Sony has been working with Ericsson on mobile phones for over 10 years and the Wall Street Journal is now reporting that the larger firm might absorb the smaller.
Sony Ericsson is the world's sixth largest mobile manufacturer, although it used to be a more significant player before the iPhone appeared in 2007 and altered the market away from feature phones.
The company has been able to pull itself back into the game with well received smartphones like the Sony Ericsson Xperia Arc. However, it has had an almost equal number of failures, like the poorly received Xperia Play, which had gaming controls but failed to find commercial or critical success.
By buying Ericsson, it would be possible for Sony to consolidate its mobile business, bringing onboard a new team to help manage other portable devices like tablets and laptops.
Whether the Sony Ericsson brand will die out following the merger or whether it will continue to be used remains to be seen. Getting rid of it could devalue the current crop of Sony Ericsson smartphones, although a rebranding exercise might do the company some good, going it alone under the solo Sony banner.
So far, a tight lipped Sony has not made any statement in relation to this report, although it sounds fairly certain that a takeover bid is indeed in the offing.
The recent launch of the Sony Ericsson Xperia Ray, an affordable media-friendly Android smartphone, has given fans of the firm a good reason to sell their old mobile phone and invest in this new handset.
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