Sanyo is in a weak financial position and has a dwindling amount of money and resources to put toward developing new handsets. Joining hands with a strong player like Nokia would be a positive move.
A deal like this could eliminate a big swing factor and make its earnings structure more stable. I could also make it easier for Sanyo to sell batteries, which is what I would like to see the company do -- focus more on its devices business.
I expect Sony and Matsushita to revise up. Sony's revision could be quite large.
