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sony+ericsson a good idea or a bad idea??? |
allexdos
Joined: Feb 11, 2002
Posts: 184
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Put it this way... ericsson and sony did not decide to merge for one reason only!!
Ericsson is the worlds largest telecoms provider of equipment. This division always performed well financially. It was the handset division that caused ericsson overall to lose share value.
Ericsson always made popular phone that sold well but often made huge loses per project, such as the R520 ($10 loss per unit)
They then decided either to resturcture the group as they did. Flextronics now make their phones but that was not financially adequate as their future prospects were forcased in red.
To cut it short, sony and ericsson thought that they would be ideal partners..... It is more a financial rather than technological advance that ericsson and sony had merged for..
I am part of a business analyst group and we forcast overall that this is a good move compared to what ericsson and sony would have headed if the merger had not taken place.
Ericsson would have otherwise have sold its handset division to another company and who knows what crap they could do.
Personally, we think that ericsson could have brought in new management that dealt with large corporate retailers with experience at high level verge of bankrupcy! |
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ionion1
Joined: Feb 05, 2002
Posts: 43
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hey folks wake up!!!!! the sony-ericsson thing happened because ericsson dying from competition being 3rd in sales after Nokia and motorola....sony saved them from becoming a joke! they can now be second to nokia and make better products!
guys don't get fooled this was a rescue operation! hehehe I can see some of you are real dreamers...hehehehe |
ionion1
Joined: Feb 05, 2002
Posts: 43
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hey folks wake up!!!!! the sony-ericsson thing happened because ericsson dying from competition being 3rd in sales after Nokia and motorola....sony saved them from becoming a joke! they can now be second to nokia and make better products!
guys don't get fooled this was a rescue operation! hehehe I can see some of you are real dreamers...hehehehe |
GOwin
Joined: Jan 17, 2002
Posts: > 500
From: .uʍop ǝpısdn s&
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this is probably not entirely true.
Ericsson handset division was probably in the verge of dying (they have signified their intention to stop manufacturing their own handsets then), but the  deal came along and an opportunity to synerigize sparked the new line. |
ionion1
Joined: Feb 05, 2002
Posts: 43
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The Japanese electronics giant Sony and the Swedish mobile phone company Ericsson joined forces to revitalise their lossmaking mobile phone operations.
Each of the companies will own 50% of the new venture.
Sony will benefit from the deal because of Ericsson's customer base and mobile telephony knowhow.
Ericsson will benefit from links with Sony because its electronics products are seen as innovative, stylish and popular with consumers.
Ericsson had to take these steps not to be left in the dust by Nokia and Motorola. It would have risked not only to stay at 3rd but maybe also be past by other multimedia based new phones.
The good thing is the gained expertise in multimedia which Sony brings to the table. The bad thing is that even if this is a so-called 50/50 deal, Sony has the upper hand in decision making and have never succeeded to breakthrough in telecomunications
FOOD FOR THOUGHT....KNOWLEDGE IS POWER!
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allexdos
Joined: Feb 11, 2002
Posts: 184
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Yes that is t
True guys... But if you were managing director of a large corporate company and a particular division was loss making, you would not sit back and try and make better handsets when that is already what you have done (T68 makes a loss per unit)
Ericsson stock value has been decreasing year by year and it tried to restructure its company by concentrating on telecom equiptment and handing over its production of phones to Flextronics USA.
Now this was no sufficient so e/// had do something as it knew that multimedia phone were coming and competition was forcasted to increase with the phone makers.
So ericsson wanted to merge its handset division. For your info, ericsson generate much more revenue and profits in its telecoms division NOT mobile division. It is amongst the best in telecom supply.
This merger meant that ericsson would not have to exit the handset industry. In this deal, ericsson has clearly gained more as it had a poorer economical outlook even in a booming market and good phones released. Sony on the other hand was NOT making loses in its handset division.
SE are now in a much better position for the next generation as much R&D, expertise, money and brading is essential to sustain in the markets. |
bart
Joined: Feb 03, 2002
Posts: > 500
From: Flanders
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the new phones will mainly be disingd by sony so the will be in silver not in any colours :(
ericsson was going the write way but now sony will take all the credit
With Ericsson and Nokia gone: we must keep their spirits alive and buy JOLLA or YOTA |
bahraini
Joined: Nov 27, 2001
Posts: 361
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i agree with you ionion1. i think ericsson was going down and sony was the only hope..
even with the huge success of t39 and t68 , i don think they could stand for longer time alone.lets see it from better point of view. sony and ericsson with the great technology of sony and the good base in making mobile phones from ericsson they can do things we never thought about , and can remove nokia from the top mobile making.. |
allexdos
Joined: Feb 11, 2002
Posts: 184
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Hey bahraini... Don't you mean you agree with me?
Take care |
Orka
Joined: Jan 01, 2002
Posts: 310
From: Greece
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On 2002-02-15 04:20, ionion1 wrote:
hey folks wake up!!!!! the sony-ericsson thing happened because ericsson dying from competition being 3rd in sales after Nokia and motorola....sony saved them from becoming a joke! they can now be second to nokia and make better products!
guys don't get fooled this was a rescue operation! hehehe I can see some of you are real dreamers...hehehehe
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Who said the opposite my friend? I said that it was the only fissible solution for Ericsson. What can you understand from this? However, Ericsson was and actually is in good financial position. They don't lost money, but they couldn't achieve their goals. Being globally the third is not bad at all and of course it is not a joke. Therefore, you should wake up matte! You can make money and run a very profitable company. What about Panasonic or Siemens then? They should shut down their cellular phones departments? No. They are trying to get a market share. As much as possible. In the same way, Sony couldn't enter the European market with its phones. Very good devices but look like bricks anyway and we cannot compare them with the design of European manufacturers. So, it was a necessity for them to find "something" to enter that market. That "something" was the joint.
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Posted: 2002-02-15 02:02
