Bumping off Ericsson was the best thing Sony did

Analysts say that Sony’s move to free itself from the pesky Viking Ericsson was the best thing it could have done for the mobile phone outfit.

Last year Sony announced it was to take full control of the Sony Ericsson joint venture in October with Ericsson receiving 1.05 billion euro for its 50 percent share.

Sony Ericsson will deliver its final quarterly report as a joint venture on Thursday, and under the influence of the buyout is likely to report that the rot has stopped.

This quarter Ericsson has been focusing more on its core mobile network gear business, moved entirely to Android smartphones and been cutting costs.

Greger Johansson, analyst at Stockholm-based analyst house Redeye, told Reuters  that things will improve further when the outfit is part of Sony.

Part of the problem with the glorious Sony Ericsson alliance was that Sony was not that happy about sharing its technological expertise with the mobile firm.

Johansson said that with Sony in control it would have to bring in its games, consumer electronics and graphics expertise into the mobile outfit.

After the buy-out was announced, Sony Ericsson moved towards the demands of its new masters and many analysts think it will make a pre-tax profit of $53 million in the fourth quarter, bringing its full-year earnings up to 45.8 million. Next year, it thinks, will get even better as full integration with Sony should also mean Sony Ericsson can get its costs down closer to the level of competitors.