Sony Ericsson Needs Sony Firepower for Android War

Posted by Gadget

The impetus may come instead from Ericsson partners, which could push Sony to redeem him if their joint venture continues to lose its importance.Sony Ericsson finally turned to profit last year, but it is May not last, given the current stack the odds against him."I think the (Sony Ericsson), but is quite irrelevant to the market in terms of volume, and even the value of shares on the market," said WestLB's Thomas Langer.However, Ericsson does not have an immediate need for a 1-2.5 billion euros, some analysts reckon half of Sony Ericsson's capital is worth, based on revenues of 6.3 billion euros.The debt would not be a problem, because the venture had a net debt of only 5 million euros end of March.Meanwhile, Ericsson's own core business is soaring as telecom operators to raise spending to boost network capacity choked by smartphone users.He also made a joint venture of its objectives for the period 2010-2013, no sale signs may be on the cards.Even if Sony Ericsson does not sort out their ownership issues, going to be difficult.Smartphone market is growing rapidly, with nearly doubling the annual deliveries in the first quarter to 100 million handsets, according to IDC's mobile phone tracker report.But competition for the larger piece of the pie is fierce, and Sony Ericsson will not only have to fight a deep hole, bigger rivals such as Samsung Electronics, and nimbler Asian players such as HTC, China's ZTE and Huawei.Sony Ericsson is 9 percent of the market for smartphones running the Android software, compared with 26 percent for Samsung, according to researcher Strategy Analytics.Eight analysts surveyed by Reuters, everyone thought Sony Ericsson will likely miss its target to become the biggest seller of Android.Some say that it makes it all the more important for Sony to take stronger ownership."Sony needs of mobile presence, Sony Ericsson and Sony will be content and services. Undoubtedly be achieved only if Sony takes control of the joint venture," said CCS Insight's Blaber.(Additional reporting Isabel Reynolds in Tokyo, Editing Sophie Walker and Alexander Smith)