Sony and Ericsson get a divorce

Mobile phones, Tech Digest news


It lasted ten years but now it’s over: Sony and Ericsson are breaking up their Sony will keep the mobile operations, paying Ericsson $1.5 billion in cash for its share. The move means Sony will get some of Ericsson’s handset patents, which could result in some interesting new products and online content, according to ZDnet.

Sony will now have the means to merge smartphone technology into some of its wider range products, including computers and TVs.

Once the deal closes in January 2012, Ericsson will focus on selling wireless equipment for businesses, taking a step back from consumer goods.

Sony Ericsson initially joined forces to take advantage of Sony’s experience with consumer electronics and Ericsson’s skills in radio technologies. Now the shift in the mobile market towards smartphones means the synergies for the company in having both a telecoms services portfolio and a handset operation have decreased, Ericsson said in a statement:

“Ten years ago when we formed the joint venture, thereby combining Sony’s consumer products knowledge with Ericsson’s telecommunication technology expertise, it was a perfect match to drive the development of feature phones. Today we take an equally logical step as Sony acquires our stake in Sony Ericsson and makes it a part of its broad range of consumer devices.”

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