Sony Ericsson to call it a day and go their separate ways
For the last ten years Sony and Ericsson have ventured into the mobile phone market as one, but this will soon all come to an end as both companies have decided to call it a day.
$1.5 billion in cash is what Ericsson will take home with them once the deal to buy them out has been finalised in January 2012 for their 50% share, with Sony taking full control of their mobile phone venture.
In 2001 Sony and Ericsson joined forces to rival Nokia, the then leading company in mobile phone handsets; and it is now hoped that Sony, albeit alone, will do the same again to rival Android and iOS-powered phones a decade later.
The deal will also see Sony gain several mobile handset patents from Ericsson, which will enable a new range of products and online content to launch into the market.
As Sony pushes forward with the growing demand for smartphones, bought-out Ericsson will take a backseat, concentrating more on wireless communications equipment and services for businesses, as opposed to consumer-focused products, which they’ve done for the last ten years with Sony.
This shouldn’t come as a major surprise as it was reported by a source to the Wall Street Journal some months ago that the ten-year contract between the two companies would not be renewed. One thing’s for sure, 2012 will be an interesting year for the mobile phone market.