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studied for sometime in the morning...but the heavy lunch (biryani
)making me feel lazy.will start studies again in the evening.
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Posted: 2005-05-29 10:59:55
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Sony Ericsson shoots for top 3 with more models
PARIS: Sony Ericsson, the world's fifth-largest mobile phone maker, aims to become a top-three player by expanding its low-end range, but will stay away from ultra-cheap models, its president said on Thursday.
The Japanese-Swedish joint venture, which used to focus on advanced, more expensive phones, has found that mobile operators want a complete line-up of models from fewer suppliers, including cheap models starting at 75 euros ($95).
"We need to work with a broader portfolio," Miles Flint said at the Reuters Telecoms, Media and Technology Summit in Paris. A broader line-up of models should help it to increase its global market share from the current 5.5 per cent.
"We are striving to find the breakthrough to find a higher level of market share," said Flint, who has been in his current role for about 12 months and has boosted research and development efforts to expand the product portfolio.
Sony Ericsson launched only seven new models in 2004, well below its top five rivals such as Nokia and Samsung Electronics, which launch dozens of new phones a year, Flint said. He added that he would double the figure in 2005, and increase it again in 2006.
"There's not a magic number. But there has got to be more next year than there was last year. There are still segments that we haven't addressed yet. You can look at different form factors, different price tiers and air interfaces," he said.
But he would not go back to North America with phones using the CDMA standard, he said, because there were plenty of growth opportunities in the more popular radio network technologies, such as GSM and third-generation networks.
Top Three
He declined to say when he aimed to become a top-three player, which would require surpassing the likes of fast-growing Korean rivals Samsung and LG Electronics, or the current leaders, No. 1 Nokia and No. 2 Motorola.
"There is clearly a time horizon, but I don't know what it is," he said. To gain market share it would have to make more cheap phones, which provide most of the volume and growth. But Sony Ericsson would not join Motorola and Nokia in making phones for $50, $40 or even less, he said, adding that his company was not big enough to get the necessary advantages of scale and it would need a completely different technological base to build such models.
Nor would growth come from acquisitions, and Sony Ericsson is not interested in the ailing mobile unit from Siemens, which is up for sale. "It's not an area of activity for us," he said.
Another challenge for mobile phone makers is a slow erosion of profit margins, under pressure from low-cost rivals, but Flint did not expect that mobile phones, the world's single biggest consumer electronics segment, would become as notoriously unprofitable as the overall consumer electronics industry, with average margins of 2 percent.
Eroding Margins
"We see the migration of (photo) imaging to the phone and we've been at forefront of that wave. We now see music migrating to the phone. We see TV and video moving to the phone, payment services, and a whole variety of applications. To pack all that into this is bloody difficult," he said. "I don't see the same commoditisation as in the consumer electronics industry," Flint added.
Sony Ericsson expects mobile phone manufacturers will sell a total of 686 million units this year. Although that is well below its rivals' forecasts for 700 million to 740 million units, it far exceeds the annual volume of TV and PC sales, at about 190 million each.
Sony Ericsson became profitable in 2003, and despite a weak first quarter due to an aeging line-up of models, which has since been addressed, Flint was confident it would continue to receive the support of its parent companies.
"My perception is that both parents are quite proud of what the joint venture has become," he said. Sony Ericsson is benefiting from joint ownership, he said, by getting first and often exclusive access to technology and brands, evident in its Walkman phone due in the third quarter. "We always said we would steal (from them) with pride."
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Posted: 2005-05-29 11:07:27
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Hi gang, me in bus en route 2 palakkad. Enjoying sights :-).
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Posted: 2005-05-29 11:18:30
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@blu...you goin on vacation too
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Posted: 2005-05-29 11:25:00
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Nope, attending a wedding reception.
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Posted: 2005-05-29 11:33:04
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enjoy the party
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Posted: 2005-05-29 11:40:00
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Hi Guys,
How are you all doing..!
regards
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Posted: 2005-05-29 11:52:09
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anybody saw bunty aur bubli??
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Posted: 2005-05-29 12:02:01
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@dr.thug : here I get it. Yet I can say that the vulgar bubbly add has increased the coco cola fans.
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Posted: 2005-05-29 12:32:43
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Guys me going to get k 750 i . . Where in bangalore can i get it . . . Fast fast . . I am in bangalore central shopping center . .
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Posted: 2005-05-29 13:03:00
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