For the longest time, I wondered what possible good could come out of the merger between two also-ran(s). The potential for the combined company to grab a number two slot (in cell phone sales) behind Nokia stood solid until in 2007. Then Apple released the iPhone and changed the landscape of an all inclusive phone, forever. So this week Sony Ericsson announced another disappointing quarter. Big deal?

Well yes it is. Sony has a place in history, being that they invented portable music and along with Nintendo took on portable gaming as well. They were on a roll. So what happened? The competition, Apple, took them to the cleaners. As a response to keep ahead of the Cupertino media monster, they partnered with Ericsson, a respectable, but second place runner in cell phone manufacturing. Their efforts resulted in less than spectacular phone designs and that’s a shame.

Sony is a well diversified company, they make great consumer electronics, but a visit to the Ericsson website shows that they make no mention of their phone division. Like other companies, Sony Ericsson has jumped on the large 3.5 inch touch screen movement started by Apple. They offer some very interesting phones like their Xperia x10 and Vivaz phones which offer 8.1 Megapixel cameras. Wow! So why haven’t these marvels made a splash in the US? Maybe it’s because they’re not offered here yet? Maybe Americans are too caught up in the ongoing cold war between Apple and Google? Maybe.

As Sony Ericsson loses more money, they may find international markets more lucrative or the company may fail. Doubtful, but it’s possible. While the US considers itself the center of the consumerist universe, it is best to remember that if this country loses one more cell phone competitor then it gives Apple and Google all the more power to steer our technology preferences in any direction they desire. Consumers need more competition to force companies to offer even fresher and more tantalizing ways to spend our money.