According to Sanford Bernstein analyst Pierre Ferragu, Sony Ericsson and Motorola should merge their mobile handset business in order to create an effective global contender in the handset market.

A merger would create significant cost savings as well as giving the firm the clout to tackle stronger rivals. Neither of the two companies has actually fared well from the mobile industry trend which is heading towards smartphones.

However, according to Pierre Ferragu a merged company would have enough global market share to mount a challenge to smartphone specialists such as Apple and RIM (Research in Motion).

Motorola has seen its share of the marker decline since it’s success of the Motorola Razr range. it is now banking on the Android to retrieve its fortunes and has recently released the Motorola Droid in an attempt to do that. Source – strategyeye.com