Sony and Ericsson consider mobile phone partnership
Sony and Ericsson are discussing a possible tie-up of their mobile phone operations.
A Sony spokesman confirmed news reports that talks are under way, but declined to offer any details.
Japanese public broadcaster NHK earlier claimed that Sony and Ericsson would jointly develop 3G phones in a new British-based venture.
NHK said the tie-up would be aimed at helping the two firms reduce development costs of handsets capable of delivering high-speed multimedia internet services.
Stockholm-based Ericsson sold 40 million mobile phones last year, claiming a 10% global market share. Sony's share of the market is estimated at around 1%.
Gunnar Andersson, telecoms analyst at Handelsbanken in Stockholm, said a partnership in the handset business would make good sense for both Ericsson and Sony. "It looks like a good fit."
He said: "Sony has very strong consumer brands, and a strong background in audio, video, gaming, memory sticks and data storage, all of which will be increasingly important with 3G. They also have a strong presence in Japan, which Ericsson lacks."
Mr Andersson sees Ericsson as providing Sony with platforms, volumes and, most importantly, strong relationships with operators and a well-developed distribution network.
"Ericsson will bring a strong mobile phone platform, which Sony lacks, long-term experience in the GSM market, a mobile phone specific brand name rather than the general one Sony has and still, despite recent problems, comparatively good volumes."
However, Mr Andersson said he sees a slight risk over the cultural compatibility between the North European and Japanese manufacturers. He adds that one party should provide clear leadership, and suggests this role should fall to Sony.
