US media says Motorola and Sony Ericsson should merge

Source: Internet
Author: User
Keywords Motorola Sony Ericsson standalone graphics Sony
Introduction: U.S. media today, Motorola and Sony Ericsson (hereinafter referred to as "Sony Ericsson") currently in the global mobile phone market share of less than 5%, and the advantages of the two in different markets can complement each other.  So Motorola and Sony Ericsson should consider merging. Sony Ericsson currently occupies 12.4% of the European market, while Motorola's share of the U.S. market is 17.3%.  In addition, Sony Ericsson in the Indian market performance is good, the share of 10%, and Motorola in the Chinese market share also reached 10%. If Sony Ericsson and Motorola complete mergers and acquisitions, they can reduce research and manufacturing costs. Sony Ericsson now invests 15% of its revenue into research and development, with sales and general management costs reaching 13% of revenue.  In addition, the industry estimates that Motorola's current equipment operating costs accounted for 33% of the revenue. Sanford Bernstein, a research agency, estimates that two companies can reduce operating costs by 10%, which will benefit two companies.  In the last quarter of the mobile-phone manufacturing slump, Sony Ericsson's operating gross profit margin was 12%, compared with Motorola's 2.3%. Such acquisitions will help Motorola achieve the goal set two years ago, separating the mobile phone sector from corporate mobility solutions and home networking.  And next year a variety of Android phones to the market is also conducive to two mergers and acquisitions of a major factor. Android phones have been moving into large-scale commercial operations from this summer, far behind Apple's iphone.  But so far, the market has 10 of the balance of Android phones, next year, the number of Android handsets will be about 30, most of them will be from Asian manufacturers. According to Morgan Stanley, the number of netbooks and smartphones shipped last year was about 300 million, and the market leader was undoubtedly Nokia, with a market share of about 24%.  But the fastest-growing handset company is Apple, which now has a market share of 10%. More Android handsets will be available to meet the needs of a wide variety of users, and these Android phones integrate independent graphics, accelerometer, GPS, touch screen and physical keyboard as needed.  It is widely believed that Android phones will be more attractive to the midrange rather than high-end market concerns. Unlike the iphone, Android is a more open system with little control over third-party applications. In the short term, the closed pattern may be the winner because it is easy to integrate and use.  In the long run, however, such systems will be replaced by open systems. Motorola has now launched the Android phone droid, and Sony Ericsson will launch its own Android phone. They will face competition from a variety of similar smartphones. So with the advent of Android phones next year, Motorola and Sony Ericsson need to consolidate. (D-Gold)
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