Sony will acquire Ericsson’s shares in Sony Ericsson by mid-2012

Japanese electronic manufacturers Sony Corporation announced this week that their intentions of purchasing Ericsson’s stake in the joint venture ‘Sony Ericsson’ is final. The company made public their plans in October this year that Sony Ericsson will be
made a sole proprietary of the Japanese company.

The initial announcement line-out a schedule that will complete the transaction in January 2012 but due to extensive work to be done, the complete acquisition will fall somewhere in the mid of next year.

Kristian Tear, executive VP and head of sales and marketing at Sony Ericsson, while speaking to the Times of India, said:

"A lot of planning goes into getting the branding right but we will be done by middle of next year. It will also mean that the marketing and advertising investments will go up. We haven’t been as fierce as we were a few years back but we will step it
up, refocus and invest more in brand-building in select markets and India is one of those markets."

Sony and Ericsson, a Swedish telecommunication company, joined hands on October 1, 2001 to form a new enterprise that will solely focus on cellular telephone devices, hence the name Sony Ericsson. By 2009, the company was the fourth largest mobile devices
seller in the world after Nokia, Samsung and LG.

In last one decade, SE has produced some of the most advanced mobile phones, K 700i being the most popular and successful handset.

During the mid-2000s, the company amalgamated Sony’s flagship technologies like the Walkman and Cybershot into their phones, bringing the handsets into the elite of the industry.

However, after the advent of iPhone and the likes in 2007 and onwards, SE’s market share started to plummet and the company became 6^th largest cell phone manufacturer in the world by 2010.

The main reason for Sony’s complete acquisition of the joint venture is that the Japanese company wants to focus on smartphone technology. SE is already in negotiations with Microsoft and Google for their advanced operating systems, Windows Phone and Android
OS, respectively to be incorporated in their upcoming handhelds.

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Posted by Usman Khalid on Dec 7 2011. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry