Sony to go solo

SONY ERICSSON    SONY  ACQUISITION

Global - Sony is in talks to buy Ericsson out of its 50-50 mobile phone joint venture, according to widespread reports.

The move could help Sony regain ground against competitors Apple and Samsung, by integrating its smartphone offering with its businesses in tablets, hand-held gaming devices and PCs. Electronics, gaming devices and tablets are offered by Sony, while mobile phones come under Sony Ericsson.

According to Reuters, the talks have come about as the two companies are to decide this month whether to renew their pact, which was created in 2001. Sony Ericsson is due to report its Q3 results later this month.

"Sony's move today was inevitable and makes absolute sense," InMobi vice-president and managing director for Europe and the Middle East, Rob Jonas, told M&M.

"Sony clearly recognises the opportunity to build an end-to-end mobile experience for consumers from device to entertainment to commerce. We've all witnessed Apple's innovation on this concept with enormous success by tying devices like the iPhone, iPod, and iPad to entertainment and commerce through iTunes for apps and music. Google, Apple and Samsung are all currently focusing on touch devices - the phone, the tablet and the TV - as consumers move away from the desktop, and now, with the recent launch of its S tablet, Sony has thrown its hat into the ring."

"Sony's full acquisition of Sony-Ericsson would equip it with the assets needed to compete against Apple and give it a competitive advantage over its other global rivals such as Samsung who lack the entertainment assets required to build the truly compelling consumer experience needed to take on Apple," he added.

Sony and Ericsson both declined to comment.

Cream Global