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Should Ericsson sell its stake in Sony Ericsson? |
goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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Some business strategists believe now is a good time for Ericsson to sell its stake in Sony Ericsson  , saying it should concentrate on building and managing networks - According to Bloomberg,
Ericsson AB in 2001, after reporting consecutive annual losses, combined its mobile-phone business with that of Tokyo- based Sony Corp. The 50-50 venture posted its first quarterly profit in October 2003. It may be time for Ericsson to sell its stake to focus on phone networks, the company's main business, some investors said.
Does this mean that Ericsson is seen as not being 100% for the venture?
Also,
In the last two quarters, Sony Ericsson has climbed from being the sixth-largest handset maker to the No. 4 position.
Sony Ericsson's market share rose to 6.7 percent in the third quarter from 6.2 percent in the previous quarter and 6.4 percent a year earlier, Stamford, Connecticut-based researcher Gartner Inc. said in November.
Still, the company has to contend with competition. Nokia, based in Espoo, Finland, is more than five times bigger by market share. Sony Ericsson would have to more than double its share to surpass Suwon, South Korea-based Samsung Electronics Co., the No. 3 mobile-phone maker. Motorola Inc., based in Schaumburg, Illinois, is second to Nokia, according to Gartner figures.
Of course, the two companies would deny any rumours of a sale of one half of the venture but if it was so, does anyone think the brand would take a hit if the handsets where known as Sony only?
How does Sony W810i sound to you?
(strange, I always thought the loge looked more like an S than and E. Mmmmmmm....)
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senninha
Joined: Jan 05, 2003
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i think without the ericsson part, i would look at the brand in the same way as samsung or maybe even LG. it's ericsson that provides the bulk of the technical prowess. without it, it would just be another marketing exercise... |
Davo_169
Joined: Sep 06, 2004
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From: perth/thredbo
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sony ericcsooon is a different company altogether from ericcsoon so wouldnt the name stay the same
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S4k1s
Joined: Mar 09, 2005
Posts: > 500
From: Sweden
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No I do not belive Ericsson or Sony should sell it's part in .
Why sell something that brings in profit to both companies?
Some business strategists would be better of working with womething else  |
BobaFett
Joined: Jan 06, 2004
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From: Kamino (wish it would be Lund)
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I wouldnt mind if /// would get a rid of se, at least its a shame for the master to share his knowledge with the japanese toys r us. The swedish master is very busy in the background like 3g system etc and at other brands aswell, let sony suffer alone imo
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goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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@Trogdor. But if Sony bought Ericssons stake, that would give Sony the right to drop the Ericsson name and I am sure Ericsson wouldn't put there name on a venture that they were not involved in.
If for example - god help us - Sony began to make rubbish handsets then I don't think Ericsson would want to be associated.
@boba. Some analyst are wondering "what the synergies are between handset manufacturing and networks", which is why some are saying this would be a good time for Ericsson should offload its share.
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[ This Message was edited by: goldenface on 2006-01-18 10:42 ] |
masseur
Joined: Jan 03, 2003
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From: Sydney, London
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This also makes the assumption that Sony would want to go it alone and I have my doubts that they would want to.
Sony made great phones like the Z5, Z5m, Z7 etc which still have respect now but its a much tougher market place now than it was then.
Having said that, if this was to happen then presumably all intellectual rights and personnel would move to Sony so it may well be just the same company but without the Ericsson part in the name
interesting thoughts...
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BobaFett
Joined: Jan 06, 2004
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From: Kamino (wish it would be Lund)
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/// supports siemens, blackberry for example, without written its name on the covers, why not the same way support sony?
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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Quote:
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On 2006-01-18 11:42:14, BobaFett wrote:
/// supports siemens, blackberry for example, without written its name on the covers, why not the same way support sony?
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Well /// made great handsets but is the only visible evidence left that it ever did. Would you like to see ///'s role as a 'once great handset maker' consigned history? 
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JK
Joined: Feb 24, 2005
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From: S. Africa - JOZI
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I doubt any of them would benefit from seperating... in my view Sony Ericsson is only taking of now!!! |
BobaFett
Joined: Jan 06, 2004
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From: Kamino (wish it would be Lund)
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@golden why not? /// mobiles were just a division of a huge co. They should have stopped making fones after the final release -t68m- instead of the sorryericsson story imo. The end a party is the best when u are at the top...
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methylated_spirit
Joined: Jul 07, 2004
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From: Bonnie Scotland
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If it aint broke, why bother trying to fix it? I had Sony phones before the merger, and was sceptical about the product quality - ericsson phones were always poor imho. But after i got the p800 my view changed dramatically, and i cant imagine it any other way now, to be honest.
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Delta 9
Joined: Mar 26, 2003
Posts: 193
From: The Netherlands
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I think it would be foolish for Ericsson to step out of this alliance. First of all they are making a profit. Second of all after 5 years in their existence SonyEricsson has gained a lot of credibility (existence right) and have become an international brand.
Another important thing I would like to point out is that the article states mobile phones aren’t Ericsson’s core business. This is incorrect; it’s not a core business any more. But it was for a long time, as a matter a fact, this was the reason to create the SonyEricsson joint venture in the first place.
Just my opinion anyway....
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methylated_spirit
Joined: Jul 07, 2004
Posts: > 500
From: Bonnie Scotland
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Whats all that guff about the market shares, too? It seems that they are inferring that because arent the top dogs, they should just give up...?
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[ This Message was edited by: methylated_spirit on 2006-01-18 13:24 ] |
JK
Joined: Feb 24, 2005
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From: S. Africa - JOZI
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When SE takes over the market then they can seperate!!! |
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Posted: 2006-01-18 11:21
