Loading ...Uncertainty for Sony Ericsson
In an interview with the German newspaper Die Welt Sony CEO Howard Stringer has hinted that Sony may be contemplating a buyout of Sony’s joint mobile venture with Ericsson.
When asked whether it was time for Sony to end the venture with Ericsson Mr Stringer responded:
It’s certainly been a difficult year, but, buying out a partner is never an easy thing.
A buyout wouldn’t be unprecedented given that Sony is currently buying out its joint music venture with BMG. Mr Stringer seemed to offer an explanation for a possible buyout, namely that he feels Sony Ericsson isn’t as ‘nimble’ as it could be given the need for Sony and Ericsson to consult one another over how the company is run rather than if the company was wholly run by Sony.
Most telling of all though was Mr Stringer’s answer to the question of whether or not Sony Ericsson will be around in three years time:
We have to work together again as we did two years ago or the joint venture will have to find its own solution.
When the interviewer comments that it’s a diplomatic answer, the response from Mr Stringer is that it was intended to be.
It’s these last comments that, in my opinion, really bring home the idea that all is not well with Sony Ericsson. Mr Stringer clearly thinks something has to change at Sony Ericsson, and that something appears to be communication. The question is though, how and why did communication between Sony and Ericsson break down? Why aren’t they working together like they used to?
If Sony did decide to buyout Ericsson it wuld be an enormous risk, after all we shouldn’t forget why they partnered with Ericsson in the first place. On the other hand, if Sony Ericsson continues to do poorly might Sony decide that it just isn’t worth it and pull out entirely?
via digg
Filed under: Corporative, Interview, News
(6 votes, average: 2.33 out of 5)
Loading ...
One bad news after another. First the X1 is being delayed until the end of the year and now this.
Fairly shocked by this, i firmly believed that all was well in the sony ericsson camp. Everyone seems to have one of there phones (including me) and i thaught it was one of the most well loved and strongest brands out there, not to mention there sponsorship ties with the Womens tennis association, what affect will this have if it happens i wonder?
i wish the whole SE collabo will crumble. Their phones are getting boring with the same old language being used over and over ad nauseum. Sad to say Nokia is the clear winner.
If SE ceases to exist, that would be bad. I love their phones for the simplicity and powerfulness of them.
SE just needs to wake up and starting making the higher end phones that people demand these days. Nokia N95 of 2 years ago proved that and SE hasn’t changed their UIQ platform in 3 years. Since the P990i, their UIQ phones have not changed too much. Still UMTS, no EDGE, slow processors, oudated browsers, etc.
So… why DID Sony partner with Ericsson in the first place?
It’s about time
Finally, its about time we just had Sony in the picture!
Goodbye Ericsson!
Hi Michell,
Please delete my former comments, thank you very much.
When Sony and Ericsson got “married”, Sony was new in cellphone market. Its phones are a small evolution form cordless phone. Ericsson was the best in GSM technology, but their phones could not compete with giants like Nokia and Motorola although Ericsson cellphones were the best in 90s at least in my nation, Ericsson cellphones was going to die. At that time Samsung was a potential competitor. The combination of Sony and Ericsson was a great idea. Sony – a giant electronics maker, Ericsson – the symbol of GSM technology, the two made a potential brand – Sony Ericsson.
Now SE become top five in Cellphone industry. The cooperation that has made this brand succeed in the past can not help it thrive or even stay the position. The cellphone market are changing radically or in the other word, there is a revolution in cellphone industry. Now cellphone are becoming a platform rather than a phone. What is happening in cellphone industry now is the same as what was happening with computer industry in 80s and game console in 90s last century. The disbanding of UIQ, the opening of S60, the birth of Android are signal of this change.
It will be better if Sony or Ercisson take over SE joint venture, because it has to change its direction quickly. If SE is still not getting better, there are two options Sony, the first is to withdraw, the second is to buyout.
For romantic SE lovers this is bad news, for others this is good news.
So you guys want to get rid of Ericsson? I really hope that won’t happend!
Ericsson must be with sony !, sony might be worse without ericsson, they might not have much pros to do the job in the communication fields
Sony needs to remember that the Walkman brand would’ve been dead without the joint venture. Let’s hope they can fix it and not just give up because of 9 months of bad performance. It’s turned rond once, it can do it again.
Kneejerk reaction much?
Too early
Kneejerk reaction much?
Too early to predict any sorta split, honestly. Buyouts and de-mergers are expensive, tedious affairs and companies don’t resort to such drastic measures unless they literally have no way out.
Kneejerk reaction much?
Too early to predict any sorta split, honestly. Buyouts and de-mergers are expensive, tedious affairs and companies don’t resort to such drastic measures unless they literally have no way out.
In 90s last century, only some companies could produce cellphones.
Now even a small company in China can do this job well.
The problem now is to find a way in the changing market. Sony or Ericsson alone could do this better than both of them do.
I wonder what kind of changes this would mean…
seriously, the phones and their designs aren’t horrific. Its simple, straightforward.
i know a great many people around me who love their SE phones all the way from K750 up to the C902 and G900. Some went to other brands and came back again in short time. Others switched over and stayed.
then again… romantic and classic people who go for simplicity and such dun usually change their phones all too often. LOL.. unlike those chasing trends and hipness.
…and instead of buying out, splitting & so on, what about changing the people who runs two powerful companies so badly? Take a look around: there are thousands of overpaid top-managers & CEOs that dry out firms but it’s the employees that get sacked …Sony’s one of the leaders in technological industry and SE proved to be very innovative and solid in its product range, so guess who’s to thank for all this…
This is a sad day in the mobile world but i have to say this, somthing smells fishy here, i dont get it motorola is doing way worse and they have not even declared bankruptcy yet or have thrown in the towl they keep fighting why can’t SE do th same thing? Well i for one can say, why i come on this site every single day michell can tell you that the truth is samsung has taken there place its true now the real war will be between samsung and nokia im sorry to say but that is what it is coming to.
I just bought a samsung omnia and was not even looking in any direction on the SE brand it was either the omnia or that new n series but i had the n82 and hated it bought the omnia and i gotta say i havent loved a phone this much since i last had my k800i!! it’s perfect it has everything, great image quality, looks great, and best of all unbelievable battery life why cant SE do the same? They have the funds it is sad but if something doesnt turn around by next year SE will be in worse condition then they are now, i wish them the best.
It would be kinda cool to own a Sony mobile phone. Sounds like those Japanese NTT Docomo phones to me >_<
I wished for a Sony phone! Haha.
Brian said:
“Ericsson must be with sony !, sony might be worse without ericsson, they might not have much pros to do the job in the communication fields.”
But for me, it is all right to leave those communication fields for many technology sony could bring in the mobile industry.
Just think of
-the true Cyber-shot in there cams to your phone.
-the true Walkman in there music player to your phone.
-Bravia technology to your phone.
-And Playstation gaming to your phone.
Just think of it and you might realize what I mean.
Howard Stringer is a professional COE! He is not dump to even think of leaving Ericsson! He is only let down by this years 3Q sales results.
So dont worry SE fans, they have a problem, and they are fixing it
well i must say that the mobile industry has reached its peak where sales dont get any more higher and only to be maintained in same level therefore competition gets tougher. and one option for sony to maximise its potential control is to buyout. when that happens, sony have more control over its directions.
at last !!!! sony is going on its own, i think that it will have a gr8 future in the mobile market due to its well-known technologies in computers and electronics. during the last year SE started to introduce crappy fones 2 the market, i hope sony will amaze us with its products that should hopely have awe-inspiring technologies :D:D:D:D:D
nokia phone option is much detail from sony ericsson. Nokia call log option is much details (Exm: we can get 1 month call log in nokia sis models ). But sony Ericsson is same just like old model option (siemence C25 or Ericsson T10). This is 1st communicator devise than camera phone or Walkman phone. it time to for manufacture or buyer.
SE makes decent phones BUT…
1. Really expensive. The Japanese believe that good quality items is related to high prices.
- (I’m Asian so don’t start with ”You’re a racist” replies).
2. Phones are becoming too… Bland and repetitive as they’re beginning to look the same.
3. Where’s the features? The W series may be Walkman phones so why put camera in without AF or Flash??
4. Not everyone likes SE’s proprietary charger port as many people have voiced frustrations on other various forums about this! Put in 3.5mm adaptors for headphones and mini-usb for charging!
5. Funny how many people in North America buy SE phones when SE only sells about 2-3 models here (generally thru Cingular/ATT). North America is NOT even an “official” market for SE!!
- When will SE pay attention to potential customers in North America??!!
- Have to buy phones when in Asia to use here in US! It’s cheaper than buying imported phones usually!
6. Why do SE phones’ keypad so small? Not everyone have small fingers!
7. Why do SE phone software suck? Media Manager which took over Disc2phone is still terrible! Not even close to the ease of use of Apple’s iTunes! Creating playlists from MM is terrible!!
Too many problems with SE. They should just disband! If not, at least they should “Start” listening to customers and create phones that people “actually want” not what SE “thinks” people want!
Personally I don’t really care about the company’s structure. If Sony made cool phones, why not split? The problem is that it’s not the companies that make mistakes, but people. And if nothing is made addressing this issue, any company will continue to suffer failures, whatever its structure is. I agree that some SE phones have problems, but they are solvable, they can and should be solved.
i believe that SE downfall started about 1 year ago with the arrival of the overhyped k850. there was too many flaws with the phone itself and for a flagship phone, it just failed to impress. it is packed with innovative ideas on paper but just crash and burn when it all came together. in addition, SE should invest in their hardware for video recording division. QVGA (15mpf) just don’t cut it anymore..most tech freaks will stay away from SE.