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Sony and Samsung to Team Up?

The companies have invested $2 billion

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27th of July 2005, 09:37 GMT

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Although up until now, Sony and Samsung have competed in most of the domains, the once indisputable leader of electronics, Sony, is starting to change its attitude towards Samsung, a producer regarded as an important player only on the low-end segment of the
market.

But now, thanks to the excellent quality products and stunning prototypes, the Korean producer has a completely different image. And Sony has bitterly watched as Samsung grew more and more, and now, the Japanese are proposing a long-term partnership to the Koreans.

Sony has started to negotiate with Samsung to save some of its production divisions that are having some financial problems.

The two giants have invested $2 billion into a facility from South Korea, fitted with state of the art equipments, which will produce liquid crystal displays.

It seems that Sony will announce this week poor financial results, the losses amounting to hundreds of millions of dollars, and the partnership with Samsung is a cry of help from the Japanese producer.


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Comment #1 by: onlineparasite on 28 Jul 2005, 17:52 GMT reply to this comment

Could you please provide us with the source?

It is very important to know that although it may seem that Samsung is 'developing' very fast, it has yet not done any kind of major innovation, most of its strategies are on the marketing segment, while Sony always surprises us with their style, creativity and designs.

Moreover, reporting losses is not unusual for Sony, in fact I believe this is their case most of the time because they make long-term investments; for examepl, currently the Cell processor and the Blu-ray, their investments in these two items are yet to pay off.

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