Thursday, May 26, 2011

Analysis: Sony Ericsson is in need of firepower of Sony for war Android

STOCKHOLM/HELSINKI - needs of Sony at the Japan to exercise control over Sony Ericsson if the combined joint venture is to recover market share and relevance in the treacherous world of mobile devices.


Last year the company 10 years has set the ambitious goal of capturing the software market for the platform of Google Android, smartphone most popular of the world, in order to rake in the statements of the market in rapid and profitable growth.


But to achieve his objective, Sony Ericsson needs an owner with deep pockets dynamic and multimedia assets. His trademark languishing in comparison with Apple Inc., including the iPhone and iPads have seduced gadget-hungry consumers.


Taking full control of the company with the Sweden Ericsson would boost the overall supply of Sony, which includes content, game devices, electronics of consumption and the same tablet computers, but is still missing its own smartphones.


Analyst Gartner "Sony did not seem interested at the moment to make such an approach, but now the complete offer history is very, very"in", and Sony may be looking at Apple and thinking that they could come up with a similar offer," said Carolina Milanesi.


Sony and Ericsson venture 50: 50 - formed in 2001 - prospered after his breakthrough with the phones of Walkman and Cybershot cameraphones, both received the marks of Sony music.


But he loses leaner rivals at the end cheaper, and its share of sales combined total fell just 3% of more than 9% at its peak.


Now, Sony Ericsson is pinning its hopes on a switch in focus for smartphones, the party experiencing the most rapid growth of the mobile market and especially phones powered by Android.


He made some progress and turned a net profit of 90 million euros (127 million dollars) last year, after booking a loss of 836 million euros in 2009.


COMPLICATIONS JAPANESE


In order to snare new customers, Sony Ericsson needs access to popular content from Sony. This includes the PlayStation, a catalogue of music, including artists Justin Timberlake and Bob Dylan and the films and TV shows such as the popular comedy of the U.S. "seinfeld."


It has taken steps in this direction already. It has recently deployed the smartphone Xperia Play that allows users to access the PlayStation games.


But its product is fine and expensive and is being undermined by parent Sony, which deploys from other products in direct competition.


Sony has recently launched a tablet computer that runs on the Android software, as well as own brand portable gaming device. It also provides free PlayStation other phone manufacturers.


Nobuo Kurahashi Mizuo investors securities said that he made much more sense for Sony's Sony Ericsson roll in its strategy in competition with it.


"With Sony Ericsson phones (separately) involved could make it more difficult for Sony to achieve its objectives," said Kurahashi.


"... Having it all under their control might make it easier to build their network strategy."


But it won't be easy, with Sony also distracted headaches. This week, Sony said that this would be a net loss of 3.2 billion for the year ended March 31 due to the effects of earthquake of March to the Japan.

The company had already been poorly, defeated by Apple in the portable music and Samsung in flat screen televisions and challenged by Nintendo and Microsoft in the battle for dominance of video game consoles.

He is also facing a massive undertaking to recover the confidence of the client after that hackers accessed the data of the customers of its platform of games online in April.

"Given the magnitude of the current challenges of Sony, a gesture to Sony Ericsson short term seems unlikely," said analyst CCS Insight Geoff Blaber.

SILENT PARTNER SWEDISH

The pulse may come rather from partner Ericsson, which could push Sony redeem if their joint venture continues to fade in relevance.

Sony Ericsson has finally turned a profit last year, but that may not last, as the odds being stacked against it.

"I think (Sony Ericsson) is already enough relevant market in terms of volumes and the same share of market value,", said Thomas Langer WestLB.

However, Ericsson has no urgent need for the 1 to 2.5 billion euros analysts believe half of the equity capital of Sony Ericsson is worth, based on his income of EUR 6.3 billion.

Debt would not be a problem, given that the company had a net debt of only EUR 5 million at the end of March.

During this time, the core business of Ericsson are mounted sharply as telecom operators raise spending to stimulate the capacity in networks stifled by smartphone customers.

He was also part of its objectives for the period 2010-2013 joint venture, signalling perhaps that no sale is contemplated.

Even if Sony Ericsson address its problems of property, the course will be difficult.

The smartphone market is growing rapidly, with expeditions doubling almost every year in the first quarter to 100 million wireless handsets, according to the report of tracker for the mobile phone of the IDC of.

But for a bigger share of the cake, the competition is fierce, and Sony Ericsson have not only to its rivals deep-pocketed, most major battle as Samsung Electronics, but also agile like HTC, China ZTE and Huawei Asian actors.

Sony Ericsson has 9 per cent of the market of smartphones running on software Android, compared to 26% for Samsung, according to researcher analytical strategy.

Eight analysts interviewed by Reuters all thought that Sony Ericsson probably don't miss its goal of becoming the biggest seller of Android.

Some say that it is more important for Sony to stronger support.

"Sony has need of a mobile presence, and Sony Ericsson has need for services and content of Sony." "It probably cannot be achieved if Sony takes control of the joint venture," said Blaber of CCS Insight.



















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