Analyst Doubt Sony’s Take Over Will Bring Huge Change in Smartphone Market
Sony decide to end 10 years partnership with Ericsson in mobile-handset making. The takeover cost $1.47 billion, make Sony now fully owned the mobile device department. The Japanese side are aiming for wide-range market, since now they’re able to integrate their huge network service with all of the handset they’ve been developed.
Some market analyser agree that this is a postitive move for Sony, but they also doubt that this will make huge change in handset-bussines. For decades, Sony already share significant amount of market to other competitor. They’re also stand in the second place, followed Android in the mobile device competition. In other words, Sony has weak position in U.S market for a long time.
Roger Kay, a senior analist at Endpoint Technologies, stated that he is unsure if Sony can make comebacks now, in order to take bigger amount of U.S market-cake. Sony Ericsson is rapidly declining in the mobile handset market. According to Gardner, the joint-venture company only have 3.6 percent global share. While Apple have 18.2 percent and Samsung have 15.8 percent for their global market share.
Sony Ericsson make weak start on their first year partnership, since their failure to make profit target in 2002. In the 2005, the dinamic duo are able to drive market attention with the walkman series and cybershot series phone, along with Bravia TV set. But when it come to smartphone development, is left far behind from Apple’s iPhone in 2007. After a hard-struggle, they finally managed to do the transition and release first Windows Mobile-powered device. The Xperia X1 was released in 2008, after having some delay. It never manage to reach U.S market though.
Mark Sue, an analyst at RBC capital, said that when a relationship is not being nurtured or developed, it’s better to go your separate ways, responding to Sony’s take-over. Other analyst stated that Sony will have huge amount of obstacle to conquer the U.S market, but all of them agree that the improvement could come quicker in Sony’s traditionally strong area, such as Western Europe and Latin America.
The company will have great advantage, since they are wealth of interesting content.Sony CEO, Howard Stinger said that their main goal is to more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment.
Sony’s success is depend on execution time. In order to surpass their competitor, they must leave regular 12-18 month product cycle. Improving relationship with carriers is one good thing to do. But the final conclusion is, Sony still uncertain to make a standout change in handset market after this take-over.