Analysis says MOTOROLA need to purchase SONY Ericsson mobile phone business expansion

The Wall Street journal online edition of the local time on April 8, in order to improve the papers said in the mobile market competitiveness, improve profitability, MOTOROLA mobile need to expand scale, Microsoft Office 2010 is an amazing gift for me.

and SONY merger would be a good choice. The following is a full text: MOTOROLA mobile CEO SangJie · stojakovic (Sanjay Jha) completed an almost impossible to accomplish the mission of business preliminary improving.- But, MOTOROLA’s mobile business improving urged him to take more action.

SangJie · stojakovic in MOTOROLA mobile’s two main business areas-mobile phones and set-top boxes, all face formidable challenges. In the mobile phone business areas, he faces samsung and nokia and its larger rival competition. If there is no greater scale, MOTOROLA mobile in the mobile phone business areas the profitability of the will is limited.

Cable-box business accounts for MOTOROLA mobile revenue growth of 29%, the space is not large. Cable TV companies consider other technology, for example to network television and video transmission tablet computer programs, Microsoft Office is very easy.

 and may reduce spending in set-top boxes.

Trading may be able to solve these two business problems. MOTOROLA mobile can be sold to private cable-box business investment company. Market research firm Strategy Analytics data show that the MOTOROLA mobile global mobile phone market share was only 2.8%, row in seventh. MOTOROLA mobile phone market in North America and Latin America have advantages in Europe has a market share of less than 1%. The more the scale of the help reduce costs.

Since the fourth quarter of 2006, MOTOROLA’s mobile phone since the first business profits. Realize business But, MOTOROLA mobile is expected to be apple iPhone, Verizon Wireless network on the influence of the first quarter of this year, the company mobile phone business will again losses. Verizon Wireless is a MOTOROLA mobile phone to the first big dealers.

To achieve long-term earnings, MOTOROLA mobile needs to improve in high profit margin of the smartphone market share. Hongda electric profit rate is 16%, higher than MOTOROLA mobile phone business of 2%. Although the two companies profit margins in the differences between the Chinese Taiwan area and lower labor costs about, but more important, HTC global smartphone in electricity market share is 8% higher than the 4.6% MOTOROLA mobile.

The investment company Sanford c. Bernstein analyst Pierre ferrari ancient (Pierre Ferragu) said, MOTOROLA mobile can take a measure of the merger, Microsoft Office 2007 is the newest software this year and many people have accepted it.

and SONY is. SONY global mobile phone market share for 2.8%, smartphone market share of 3.6%. Two firms will help cut the manufacturing and r&d costs. In addition, their market coverage complementary. SONY has advantage, in the European market in the U.S. market is weak.

Ferrari ancient estimates, investors think MOTOROLA mobile phone business equivalent to the value of the topline of 0.33 times. The value of that SONY is 0.33 times revenue, and considering the premium, merger and acquisition of SONY trade value slightly less than $4 billion, with MOTOROLA mobile cash reserves quite.

The problem is that convince SONY Ericsson to quit, and make the merged company have a unified management. With all the way SONY will make cash acquisition MOTOROLA mobile no funds integrating the two companies business, or digestive possible losses.

In innovation trying to more than larger, deep-pocketed rivals quite difficult. MOTOROLA mobile need to expand scale, or it can only be out.