Sony Ericsson drops Ericsson for €1.05

Sony Ericsson is departing ways with Ericsson and Ericsson is being paid €1.05bn for the privilege. Sony will incorporate the phone division into it's networking and connected devices devision and will retain IP rights.

The partnership was formed 10 years ago with Sony and Ericsson owning an equal 50% stake, both had declining phone divisions. In the 10 years the market has progressed to smartphones and Sony has incorporated technologies from other divisions into the phones themselves such as their Cybershot cameras and Playstation Portable.

Ericsson were a world leader in cellular radio systems, but much of the handset radio technology is now available from established chip vendors so Ericsson's value to SE is less.

Sony will now continue to drive the smartphone market but as part of Sony Corporation directly.