Sony to Acquire Ericssons Stake in Wireless Venture | Jeff Kagan Tech Analyst

Print  | 

     

Jeff Kagan

Tech Analyst

     

The Wall Street Journal is reporting that Sony is nearing a deal to buy out Telefon AB LM Ericsson’s stake in the mobile phone joint venture. So Sony Ericsson may be called just Sony.

Here are a few comments from Atlanta based Tech analyst Jeff Kagan.

I think this single ownership strategy makes alot of sense. The smart phone world is growing very rapidly. There is plenty of opportunity in that space. However if a company is being pulled in this direction and that by different companies with different strategies it will never break in to the big time.

Smart phones are important going forward. However there needs to be a singular focus. Consider Steve Jobs influence on Apple. His singular focus was part of what turned Apple into a giant. Without it Apple would never have ripened.

Look at Sony and Ericsson struggling to try and manage the smart phone opportunity over the last several years. It has been a disaster.

Single focus. Single vision. That is key. Multiple focuses will pull the company apart and it will not grow.

I think this idea is sound. If Sony does become sole owner we should expect to see it transform itself.

Whether it is successful is the next question. We’ll have to see the kind of innovation they develop. And whether they can capture the imagination of the market like Apple and Google have done.

Smart phones are an enormous opportunity, and challenge. There are no guarantees, except to say that a joint ownership of a handset maker will not work.

This joint venture was started in 2001 and is the worlds sixth largest wireless phone maker.

Sony would want to integrate the technology into their other businesses like personal computers, tables and games.

They see the changes going on at Apple as an enormous opportunity for rapid growth. If they can pull this off that is.

* * * * * * * * * * * * *

These comments may be quoted in news stories.

Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com

To be added or removed from this mailing list for comment, please send me an email.

* * * * * * * * * * * * *

Other press releases from Jeff Kagan

• Apple iPhone Sales Weaker Than Expected | Jeff Kagan Industry Analyst - January 14th, 2013
• Will FACEBOOK Launch Phone This Week? | Jeff Kagan Industry Analyst - January 13th, 2013
• Nokia Not Out of Woods Yet | Jeff Kagan Wireless Analyst - January 10th, 2013
• Why Microsoft Windows 8 Holiday Sales Were Soft, Jeff Kagan Tech Analyst - January 5th, 2013
• Sprint Nextel Acquiring Clearwire for Wireless Data | Jeff Kagan Industry Analyst - December 17th, 2012