the thing is nokia decline isn't because of that, nokia have also it high price smartphones, n900 sells for 500-600$+.

they lost money due other business like the nokia siemens network, not because their phones werent profitable.

No, as I stated before, the devices division profit declined 51%.

The siemens division lost the same amount of money as the year before.

Sony really needs to split. I don't know the terms of the agreement with Ericsson, but this is there worst field. I love all Sony devices, but there phones are just garbage. Now with the whole company moving to a unifide content network, the phones are going to become even more distanced.

Sony needs to somehow create a Sony only PSP phone. That is their only hope to bring success to this market. Everything else will look underclassed compared to the iPhone.

That's not so easy a thing to do.

The problem with Brand equity is that it's tied to market perception.

For example if you had a really popular wine, and then decided to break into the "cheaper" wine segment.  Chances are your brand name will actually URT your product.

Chances are Sony has already tested brand names like the Vaio to see if they'd help.

PSPhone would be utter disaster, the gaming device doesn't have mass appeal enough to justify a phone re-incarnation.

iPhone is different, because it's not having "for gamers" stigma and is not marketed so. Btw, it's NOT the best of the breed, there are many handsets which are superior in tech specs, but it's not specs which matter, user experience is the thing. And PSP is weak at this, again.

I think he was probably refering to a PSP2 with phone functions (not just skype).  Their have been rumors that the next PSP will also be a phone, but we'll have to wait and see.  I think it would be a cool idea.  And if they could sell as many as they have PSP1's, 56 mil and growing, I would see that as a success.  They probably would sell even more if they could get a pretty good/cheap plan for users of the phone aspect.  And definitely make sure it can span across the users phone service provider of choice.  I know I'd buy it.

That is exactly what I was talking about. The way I see it right now PSP is lost. It cointinues to sell, but it is not connected at the same level as todays handheld devices, and its appeal is down. On the phone side of things S/E is tanking. There sets suck, and they are not part of the broader Sony unification.

I think a Playstation Phone made on PSP 2 tech would be the ultimate solution for both sides. Give the PSP a touch screen, a second anologue stick, 4G networking, an OS revamp to support more content, and they would have a winner on there hands.

Games are the biggest advantage Sony has over every electronic maker out there. They have one have one of the largest development staffs in all of gaming. If Sony through PSN at a phone, and laid it out as a games platform, they would be miles ahead of the rest of the crowd.

I think Nintendo has a much better library games for mobile content. Nintendo games are very compact with lots of casual appeal. That means they can be downloaded quickly and be enjoyed by a wider audience.

I don't think that either Sony or Nintendo are going go the cell phone route yet however.

Nintendo is too conservative, they won't do it.

While the PSP is nice, I don't think it has enough to compete with Android. Gaming alone isn't enough of a differentiator. Who would chose a PSP, when they can get an Android phone that can do many more things and is accepted in the business world as a professional device.

Sony Ericsson is slow in adapting to post-Iphone market, Sony Walkman lost the war to Ipod, and now they're just repeating the history. They do not know how to counter iphone, so they go for MS Windows Mobile (Xperia), Nokia Symbian S60 (Satio)and Android (X10) all at the same time. 

Im using Xperia which is a very beautiful Sony phone, but come with very unresponsive MS Windows Mobile, Sony should have invested everything in Android in the first place, and ignore the buggy Windows. Only Android hold a chance against iphone, though it would still be impossible to turn the tide. The hope for Sony Ericsson lies in X10 which is basically super sexy Sony hardware design coupled with Android.

MS should just scrap the whole Windows Mobile and write a new smaller OS if they even hope to retain in the market.

Quote from NJ5:

Why they're losing money, probably has a lot to do with the recession and high competition from Apple. Sony Ericsson has much less market share than it used to.

What Recession? The US hasn't been in a recession for a while.