Sony has completed its purchase of Sony Ericsson and will now rename as Sony Mobile Communications. The Sony Mobile Communications will be headquartered in London and is expected to have around 8,000 employees.
The joint venture of Sony and Ericsson began in 2001 and it helped Sony to develop its international presence as a mobile business. The company was able to get its brand-name involved in various product categories, such as Walkman and Cybershot. It now wants to focus mainly on the Xperia handsets and smartphone technology to develop its social media platform and integrate all of its products: PCs, tablets, TVs and phones. It is Sony’s response to sudden rise in the use of smartphones.
The firm intends to pay Ericsson €1.05 billion for its 50 per cent share in the business, although this move comes at a difficult time for Sony as it is experiencing major financial problems. Its sales were hit by lower production due to the floods in Thailand. The company reported a net loss of 159bn yen (£1.3bn) for the last three months of 2011, compared with a profit of 72bn yen a year earlier.
The company has struggled in recent years and has made significant losses in its TV division for the past seven years. It has been mainly caused by price falls, an oversupply of panels, and intense competition from other Asian manufacturers.
The company has struggled in recent years and has made significant losses in its TV division for the past seven years. It has been mainly caused by price falls, an oversupply of panels, and intense competition from other Asian manufacturers.
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