The joint venture between the Japanese Sony and the Swedish Ericsson may be terminated, rumors say. Due to extremely bad quarterly results, the company might actually part ways.
Howard Stringer, Sony’s chief executive said during an interview with a German newspapers that there are serious differences between the two companies. Difficulties in collaboration rise as their quarterly earnings seem to be grim.
Sony Ericsson’s market share grew slightly in Q2 2008, and their mobile phone sales reached about 23 million units. However, the company did not move from the 5th position in top worldwide mobile phone manufacturers although their annual market share fell by 1.4 per cent.
In practically no time, Sony Ericsson got from the 3rd position to the 5th. Too retake their place, Sony Ericsson might want to rethink their future releases. Gartner says that they need to offer new application and design to remain competitive.
Stringer said that there is a possibility that the joint venture will dissolve if the company does not find a way to collaborate.