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The most interesting latest news on the topic: Sony Ericsson |
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 Tags: Apple, Editorials & Opinion, In Brief, Legal, Microsoft, Patents, RIM, Sony Ericsson, Android, DoJ, Nortel, Rockstar Bidco
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12 March 2012 |
The Justice Department approved the $4.5 billion purchase of over 4,000 Nortel patents to major Android rivals like Apple and RIM, guaranteeing no end in sight to the legal battles entangling the mobile industry. In Brief boils down complex events to give you the heart of the matter -- today and what it means for tomorrow -- clearly and simply. What's Happening: The DoJ's review of the record-setting patent purchase of 4,000 patents, previously owned by the now-bankrupt Nortel Networks, expired without comment by the regulator. Rockstar Consortium, a partnership between Apple, Microsoft, Sony, Ericsson and RIM that won the portfolio at auction, is now free to use its purchases. The Nortel intellectual properties -- covering technologies in wireless, wireless 4G, data networking, among other technologies -- went up for sale last year as a prized commodity in an industry increasingly embroiled in a web of patent litigation. The DoJ's official go-ahead clears the way for the Rockstar Consortium to use the patents freely. What's Really Happening: The Nortel patents were purchased by an unusual partnership between Apple, RIM, Microsoft and Sony. These partners are generally rivals in the marketplace, but most are all Android rivals, now armed with a warchest of intellectual property. What's Next: The DoJ's green light will likely lead the way to a new rash of lawsuits targeting Google's mobile OS, continuing a growing wave of patent litigation against Google and its Android phone maker rivals. The Nortel IP covers some key areas in technology, particularly in wireless 4G. With the DoJ approval, Apple et al. could begin implement many of the Nortel patents in new features and software, but will likely also begin filing more infringement suits against Android phone makers, to either force sales bans or open up negotiations for settlements and licensing. The rash of patent lawsuits against Android is poised to escalate, and the Android rivals could become even more aggressive in their legal strategy to hobble Google. However, Google has boosted its patent game, acquiring Motorola Mobility earlier this year and giving the search giant its own strong portfolio of patents. Google can likely draw on its own patents to create software and Android capabilities free of patent infringement, or begin to file its own suits against rivals. The Takeaway: In an industry where the competition between device makers is fought in courtrooms as well as the market, the DoJ's approval of Rockstar's purchase officially arms a group of Android rivals with a formidable weapon. Most of the patent battles have led to few definitive victories, but even one settlement can have lasting, concrete consequences -- Microsoft, for instance, collects a sizable portion of profits on HTC Android phones for its use of its patents. The Nortel patents, especially those covering key technologies like 4G, may lead to more of these licensing settlements in the future. At this juncture, the focus on patent suits is beginning to shift from outright infringement accusations to questions over fair use of industry standards software. By covering key pieces of technology crucial to the mobile industry, the Nortel patents may get caught up in this debate. However Apple and company chooses to wield their patents, one thing is clear: the importance of patents in the mobile industry will continue to grow, and those armed with the strongest portfolios will likely wield the most influence as the patent battles evolve. |
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Sony plans to sell the Xperia P and Xperia U phones in the second quarter of this year, integrating entertainment offerings with new hardware as it launches a rebranding effort. The company unveiled the Android phones at the Mobile World Congress in Barcelona as part of its effort to re-enter the marketplace as a solo venture after buying out its partnership with Ericsson. The phones are part of the Sony Xperia NXT line, which features devices designed to seamlessly integrate Sony's vast entertainment offerings with a new line of hardware. The Xperia P and U feature sharp, large displays suited to watching movies or shows and playing games. The phones biggest selling point is their instant access to the Sony Entertainment Network, which multiple Sony devices share, including the PlayStation 3 and the PlayStation Vita mobile system. The Xperia U is the more compact of the pair and comes with the sound processing feature xLoud, hinting the company expects it to entice mobile users to access Sony's music holdings. The two new phones continue the rebranding effort Sony launched at CES 2012 and represent the direction the Japanese entertainment giant expects to head after buying out its partner, Ericsson, in a $1.5 billion deal completed last month. The deal gave Sony control of smartphone development and added patents to its library, giving the company a platform to integrate its entertainment offerings across a full line of mobile devices, as well as televisions and laptops. The new smartphone line will help Sony put its media and gaming libraries in users' hands in a marketplace where people increasingly turn to mobile devices for entertainment. However, they enter a crowded field where Sony must compete with rival Android makers, such as Samsung and HTC. Also, with Google's buyout of Motorola Mobility nearing the finish line, Sony's new entertainment-based smartphones will likely face competition from soon-to-come Google-branded hardware, which will likely integrate with the search giant's own entertainment and media offerings. Sony's leadership also hinted at the long transition ahead. Kazuo Hirai, will take over as Sony's CEO on April 1, said while the company already outlined management changes, it will take time for the new leadership and strategy to fall into place. "People have these lofty expectations that we're going to have all the answers to all the problems that plague the world on April 1," Hirai said in an interview at the Barcelona Mobile World Congress. "We're not going to have that." Sony's plans to roll out new devices rapidly in coming months prove the Ericsson buyout created a more agile company capable of reacting quickly to a changing marketplace. As Sony deals with its transition pains, the mobile device and content marketplaces continue to heat up, leaving the company with little choice but to act fast if it hopes to make a strong showing in 2012. In January, Sony unveiled the Xperia S at CES. |
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Ericsson's agreement to buy Wi-Fi technology firm BelAir Networks hints at plans to integrate Wi-Fi in mobile devices, as a way to conserve wireless spectrum and gain a competitive edge. The acquisition will allow the Swedish handset maker to add Wi-Fi to its cell phones, boosting its appeal to both wireless carriers and consumers. Demand for Wi-Fi integration in mobile devices will grow as data-hungry phones continue to proliferate and max out spectrum capacity. As a result, when Ericsson closes its deal with BelAir in the next few months, it will gain a distinct advantage in the mobile marketplace and join an overall industry shift toward Wi-Fi connection, especially as cellular spectrum grows harder to come by. Wireless carriers lean on Wi-Fi as a way to cut spectrum strain and keep data flowing smoothly to subscribers' devices, often by making use of home, corporate or institutional Wi-Fi networks. The Wi-Fi Alliance is developing Hotspot 2.0, which ties Wi-Fi user authentication to a mobile device's SIM card. This technology allows users to connect to Wi-Fi networks without entering credentials and seamlessly switch between Wi-Fi and cellular connections. BelAir's Wi-Fi structure uses an early version of this next-generation technology to stitch together a web of Wi-Fi hotspots into a makeshift "network," allowing devices to switch between hotspots without pausing for authentication. BelAir's network of access points will allow Ericsson to give wireless carriers a capacity boost without requiring them to relinquish network control or lose out on cellular revenue, and could help ease spectrum strain while carriers wait for other government-backed solutions or spectrum purchases to materialize. Ericsson's pending deal will also appeal to users, because it will allow them to connect to multiple Wi-Fi hotspots without service interruption. This could prove a real advantage for Ericsson users in areas where cellular coverage is spotty, when their network is slow or when they are traveling. Ericsson is not the first company to harness the power of Wi-Fi to get a marketing advantage. T-Mobile is expanding Wi-Fi calling to more of its Android phones to stay competitive in the wake of its failed merger with AT&T. Newcomers to the market are also jumping on the Wi-Fi trend. Recently launched Republic Wireless offers a $20-per-month unlimited plan based on connecting primarily with Wi-Fi and only falls back to a cellular network when a hotspot isn't available. The BelAir Networks deal also dovetails with Sony's expected buyout of Ericsson. By buying out the Ericsson half of the joint venture, Sony will gain the ability to integrate its digital media holdings with its upcoming lines of mobile devices. If future Ericsson mobile phones include built-in Wi-Fi access courtesy of BelAir's extensive network of Hotspots, it will ensure users have enough bandwidth to stream Sony's movies, music, shows and games without maxing out available wireless spectrum, an advantage for carriers and subscribers alike. |
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Sony revamped its mobile strategy to integrate gaming and entertainment features, in the wake of the completed Sony Ericsson buyout. The Japanese giant plans to merge its newly acquired mobile division into its electronics division, bolstering its product line-up and helping the company better compete in the smartphone market. The deal also fuels Sony's migration from low-end phones and puts a renewed emphasis on cutting-edge smartphones like its Xperia handsets. The buyout figures into Sony CEO Kazuo Hirai's larger strategy to focus on producing high-end devices with unique capabilities that capitalize on Sony's strengths. Hirai intends to "fully leverage Sony's diverse electronics product portfolio, in conjunction with our rich entertainment assets and growing array of networked services, to engage with our customers around the world in new and exciting ways," a goal the Ericsson deal will help reach by consolidating mobile operations and giving Sony full control over them. The acquisition arrives at a critical time for Sony, as the company has weathered disappointing sales and a leadership overhaul. The Japanese company is struggling to stay afloat in a competitive market, and the deal confers vital advantages, like cross-licensing and integration opportunities. Sony is already pursuing aspects of its strategy. This week, Sony granted PlayStation Certification to HTC, allowing the company's devices access to the cross-platform PlayStation Suite. Expanding this gaming suite, which was previously exclusive to Sony's smartphones, to some of the world's largest Android manufacturers is another way the company is getting its software into the hands of more customers and expanding its targeted gaming audience. At the same time, Sony's decision to license its PlayStation Suite will likely bring the company revenue, which it can use to finance its higher-end smartphones. The company is fine-tuning these higher-end devices, and the licenses are expected to cultivate a market which Sony can capture with its own devices. The Ericsson deal builds on this strategy since Sony can now employ its cloud technology and bring its gaming and entertainment holdings onto its handsets without working out deals with Ericsson. Sony paid $1.29 billion for control of the company, which includes comprehensive cross-licensing agreements, and intends to rename the mobile company Sony Mobile Communications. The Ericsson deal was a necessary expense for Sony, as Hirai's plan hinges on substantial strategy shifts, and some of these changes may only be possible with the buyout. |
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Sony's new CEO Kaz Hirai presented comprehensive plans to reverse the company's flagging fortunes, as it faces an uphill battle to regain traction in the market. Hirai formerly headed the successful PlayStation division, and eked out profits through ruthless cost cutting and realistic expectations. The company posted a $2.9 billion loss for the last quarter, but Hirai plans to carry out a wide-ranging, intensive program to reverse company fortunes and trigger much-needed innovation as the aging electronic giant pushes into the mobile market. "I have a very strong sense of crisis about the environment surrounding us," said Hirai in a press conference. "We cannot be afraid to make painful choices for the future of Sony. Our rivals and the operating environment won't wait for us." Hirai intends to dramatically cut the product line, making fewer products and focusing on a smaller, higher quality line. Hirai's strategy includes building up Sony's software offerings, which he acknowledges as weak, and using the company's current strengths like gaming and digital imaging to create premium mobile technology. Hirai's vision for a mobile push bolstered by Sony's gaming and imaging businesses makes the company's decision to purchase Ericsson prudent, as Sony can now pursue its mobile expansion with complete control over its product. The Ericsson acquisition also stipulated intellectual property cross-licensing, which will be helpful with integrating Sony's entertainment holdings with its mobile devices. Sony boasts huge entertainment holdings, including the rights to Michael Jackson songs, but it has not capitalized on these assets. Hirai spoke of a "convergence" strategy for melding the company's media properties with its devices. Hirai's experience with cloud technology is also an advantage, as he can play a key role in helping the company move to a comprehensive cloud network for Sony's products. A strong cloud offering may further bolster Sony's integration campaign and strengthen its brand by offering users the ability to use media on multiple devices. Sony's reinvention plan will face additional challenges in a highly competitive market. Sony requires an extensive overhaul just to compete with companies like Samsung and Apple in mobile technology, and then it must contend with other upstarts like HTC and LG. Smartphone and tablet makers struggle to gain customers even with advanced networks, entertainment options, and operating systems. Sony's ascent into the competition will hinge on its ability to distinguish its devices, most likely through its established gaming reputation and strong digital displays. Hirai's strategies recognize both his company's dilemma as well as its strengths, and his experience also bolsters his chances at success. Sony's current crisis is severe, but Hirai's bold plan is yet untried, and analysts and investors will watch Sony's broad stab at reinvention with interest. |
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Sony has appointed a new CEO, as the struggling electronics company focuses its energy on mobile technology for a much-needed turnaround. Kazuo Hirai, formerly in charge of Sony's PlayStation product line, will take the helm on April 1, bringing extensive development, content, and cloud experience to the top leadership position. Sony maintains a strong presence in the electronics world, but lags behind in mobile technology after a failed partnership with Ericsson. Profits fell consistently over the past two years, and the Japanese company will need to make a strong showing in the smartphone market to boost both its sales and reputation. The leadership change arrives in the wake of Sony Ericsson's underwhelming PlayStation phone earlier this year, and a mediocre reception to the PlayStation Vita, its portable gaming system, in December. Hirai occupies a prime position to reenergize Sony's mobile division. Despite the Vita's slow takeoff, the company's line of PlayStation gaming products are incredibly successful and boast a loyal user following. The Android market is crowded with big players like Samsung and HTC, but an integrated top-notch gaming component could give Sony smartphones a competitive edge. Outgoing CEO Howard Stringer called Hirai "a globally focused executive for whom technology and the cloud are familiar territory, content is highly valued, and digital transformation is second nature." Sony's nearly $1.5 billion buyout of former mobile partner Ericsson will also allow tighter integration among its products, including televisions, gaming systems, and phones. These may also tie closely into the company's vast entertainment holdings as well. Still, with companies like Apple and Google moving into Sony's territory by creating TV systems, the company's move into mobile could arrive too late to offset its previous losses. Consumers already familiar with iPhones, Galaxy devices and Droid phones will need an incentive to switch, challenging the public's adoption of Sony phones. Its new leader, however, remains optimistic, saying he plans to "fully leverage Sony's diverse electronics product portfolio, in conjunction with our rich entertainment assets and growing array of networked services, to engage with our customers around the world in new and exciting ways." Hirai's energy, experience, and optimism could be enough to propel Sony back to the top of its game, though he faces formidable competition in the market. The challenge will be to incorporate Sony's best attributes into new, mobile products to position the company for a solid chance of success, and then convince consumers to climb onboard. |
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Sony is a step closer to a renewed push into the mobile market, after the European Union approved its joint venture buyout of Ericsson. The nearly $1.5 billion deal, announced last October, gives Sony full control of the company's smartphone development and adds patents to its library. The Sony Ericsson brand name will no longer be used on mobile devices. Instead, future smartphones will carry the name of the new business division resulting from the buyout, Sony Mobile Communication. Sony kicked off its new line of solo-branded Xperia smartphones at this year's CES trade show, underscoring plans to compete more strongly in the mobile market and distance itself from past Sony Ericsson devices that suffered from mediocre sales. By buying out and dissolving its partnership with Ericsson, Sony gains power to integrate its vast gaming, movie, and music holdings in future smartphone offerings. The company will maintain both hardware manufacturing capabilities and intellectual property rights, enabling it to put a wealth of content on Sony-branded devices. The entertainment giant will also gain a potential advantage against Apple's iPhone, the new line of Nokia Windows phones, and devices from competing Android makers with the tight integration between the content the Tokyo, Japan-based company is known for, and the hardware capabilities it will gain in the buyout. The impending deal is also good news for Google, as it adds another high-end handset producer to its stable of Android makers, and indirectly enhances the company's patent library and intellectual property rights. Sony's revived mobile push will allow the company to make a stronger showing in the mobile gaming field as well, an area where it faces surging competition from smartphones. Sony is pinning its portable gaming hopes mainly on the PlayStation Vita, its next-generation portable game console, which goes on sale next month. However, the PlayStation Vita aims to please hardcore gamers, who are more likely to pay for a portable system used for gaming only. Moving forward, Sony will likely offer mobile versions of its popular games on its solo-branded smartphone line, expanding its audience by appealing to users who buy games they can play on a device they already carry in their pocket. EU approval advances Sony a step further along the path to successful competition in the mobile market, but the company still has hurdles ahead as it seeks to gain an advantage in a crowded field. |
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Sony is looking to buy out Ericsson's share of Sony Ericsson, a move to gain full control and beef up development of the struggling handset unit. Japanese-Swedish joint venture, a 50-50 partnership since 2001, is the sixth-largest handset maker, but has been losing profits in recent years as it held back on smartphone development. The two have had ongoing talks in the past, but discussions fell apart do to the settlement terms, according to the Wall Street Journal. Analysts believe if Sony takes control of the company, it will spur the advancement of smartphones and handheld games, allowing Sony to streamline development. Sony is pushing for a deal in hopes of duplicating the successes of companies like Apple and Samsung, who are ruling the market through their closely-related smartphones and tablets. Last week, Sony Ericsson CEO Bert Nordberg said the company will become a 100 percent smartphone company by the middle of next year, aiming at becoming the largest maker of Android devices in the U.S. But the announced smartphone development still falls under the Sony Ericsson partnership, not as a separate function for Sony. If Sony and Ericsson decide to part ways, the deal may all hinge on how much Sony wants to pay Ericsson to buy out its share. Market analysts believe Ericsson's side of the business could be worth about $1.5 billion because the transaction could include the Swedish company's mobile technology patents. The purchase may further a possible strategy to combine mobile devices with its music, video and gaming lines, a much needed boost in the arm for a company late to the tablet market and trailing Apple and Samsung. Sony and Ericsson may also remain separate entities, in which case Sony may go forward with smartphones and tablets that feature the company's top-ranked PlayStation brand, as has been anticipated for several years. The indecision about the partnership's future is causing smartphone delays, and an unclear gaming path for both, and giving the competition a big headstart. If Sony and Ericsson part ways, it could streamline operations for Sony, allowing it to resharpen its focus on integrating smartphone and tablet development to once again be an industry leader. |
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Sony Ericsson today announced its latest smartphone, "Live with Walkman," which runs Android 2.3 Gingerbread and features Qriocity support with deep Facebook integration. The handset features a 3.2-inch mineral glass display and contains a 1-gigahertz processor with 380-megabytes of RAM, which buyers can upgrade to 32-gigabytes by purchasing a microSD card. The device also comes equipped with a front-facing, Skype-enabled video camera and a 5-megapixel rear camera that can record 720p films. The phone targets entertainment-oriented consumers and includes a 3G radio, Sony's xLOUD to enhance audio output, and TrackID to help people identify and share currently playing music. The handset also includes a dedicated "Infinite" button that pulls up users' Qriocity music library and enables them to share songs on Facebook. Nikolaus Scheurer, Sony Ericsson's head of product marketing, describes the rationale behind Live, which is designed with entertainment in mind. "Consumers want smartphones to deliver a rich and social entertainment experience," Scheurer said. "Rather than a one dimensional music experience, they want instant and seamless access to new content, combined with the ability to share and connect with their friends." No word yet on a release date or price, but reports suggest Live will hit shelves during the fourth quarter, possibly in October. If it debuts this fall, Live will face competition from the long-awaited iPhone 5. Apple plans to release its iCloud service at that time too, providing an alternative to Sony's Qriocity music service. Sony Ericsson's new device will also have to compete with the popular iPod, which makes up one-third of Apple's mobile sales. Sony Ericsson may not beat out the competition in its Live debut, but it leverages the company's deep ties in the entertainment industry and may find an audience with music-oriented customers. And given Sony Ericsson's recent business slide following the Japan earthquake and massive data breach, the company could use whatever boost the device can give it. |
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Sony Ericsson today reported its first loss in a year and a half, taking major hits from the fallout of the Japan quake, as it navigates its transition to smartphones. The Japanese-Swedish joint venture posted a second-quarter loss of $60 million, due to sliding sales of its feature phones. While high-end smartphones continue to thrive, lower-income consumers have stopped buying and upgrading feature phones, a sector where Sony Ericsson previously held some advantage. "The feature-phone market is collapsing much faster than I anticipated," said Bert Nordberg, Sony Ericsson's CEO, adding that the drop in western Europe is "enormously big." As a result, the company shipped only 7.6 million handsets, less than the 9.1 million expected by analysts. The company hopes to reverse the trend and has already made moves into the higher-end market with its recent releases like the Xperia Arc and the Xperia Play, which targets gamers with a slide-out Sony PlayStation keyboard. In addition to boosting production on those models, Sony Ericsson also recently announced Xperia models for athletes, resistant to water and dust and equipped with a wireless heart-rate monitor. It also aims to expand its share of Android handsets to at least 25 percent from its current 11 percent, according to Nordberg, which may make it more of a presence in the growing Android device sector. The company's current expansion into higher-end smartphones, however, derailed after the Japan quake, which cut about 1.5 million units from sales. Sony Ericsson's phones use Sony components, like sensors, displays and batteries, made in northern Japan. As a result of the quake, the company had to redesign some phones with different components because of shortages, affecting sales inventory as well. To pull itself up from its current loss, the company will continue to transition to smartphones where profit margins are higher. Sony Ericsson's difficulty in finding a place in the competitive high-end mobile market echoes others' troubles in making the transition. Nokia, LG and RIM are all anticipating sluggish revenue this quarter as well, due to their slow moves into smartphones. These companies face formidable competition from devices by Apple and phone makers who concentrate primarily on Google's Android OS, such as HTC and Motorola. All are set to roll out premium smartphones, including Apple's iPhone 5 and Motorola's Droid Bionic, for the rest of the year. Sony Ericsson knows it needs to move out of feature phones and into high-end devices to pull itself up, and is banking on more Android devices to help it stake a claim in the smartphone market. Its beginning steps, with its Xperia line, hit obstacles with supply chain shortages due to the Japan quake, but the company may face even more difficult roadblocks as other device makers gain ground with their own Android phones. |
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