>
New Topic
>
Topic Locked
Esato Forum Index
>
Sony Ericsson / Sony >
General
> SAD SE 2007 Portfolio-Hard to digest facts
Bookmark topic
@rambo47
Demand may of been higher for the low to mid range but that is only to be expected but of 111 million units shipped Nokia shipped over 9 million N series and 2 million E series phones during Q3 2007 that roughly 10% of devices sold being smart phones quite impressive i think. I would say this helped produce a fair amount of the profit as many of these are premium devices with prices to match.
What may be worrying for SE is that the markets they were starting to do the best in and many here where saying they were gaining an advantage in seems to have also reversed as Nokia's sales increase in developing countries is most spectacular, with Asia (including China), the Middle East and Africa all near or over the 40% growth mark compared to Q3 2006. Europe grows at a smaller but respectable 16.9%.
Marc
--
Posted: 2007-10-19 19:05:43
Edit :
Quote
@Dogmann
Number of smartphones sold by Nokia can actually be much higher unless S60 is only used in the N and E series.
I'm not sure exactly wah you mean SE should be worrying about. Their year-on-year volume growth was 31%, mainly driven by lower priced phones, which is not bad. What SE lacked in Q3 was some new high end phone(s) to complement their range of budget mobiles.
[ This Message was edited by: Arne Anka on 2007-10-19 18:36 ]
[ This Message was edited by: Arne Anka on 2007-10-19 18:38 ]
--
Posted: 2007-10-19 19:27:49
Edit :
Quote
@Arne Anka
What i am talking about is this statement from January of this Year from this thread
http://www.esato.com/board/viewtopic.php?topic=139535#post1878314
"Sony Ericsson increased market share during the quarter due to the continued success of products such as the K800/K790 Cyber-shot™ phone and Walkman® phone line-up. Average Selling Price (ASP) was slightly higher than expected due to more favourable than expected market conditions and continuing strong demand for Sony Ericsson’s hit model handsets. Particularly strong growth in emerging markets in Latin America and Asia Pacific, as well as in Europe, illustrates Sony Ericsson’s success at expanding the portfolio to increase market share in new markets with attractive mid-tier products, and without undermining profitability.
Actually it's quite interesting to see what was said just 9 months ago in that thread. Also that fact that Nokia are starting to regain Market Share in the regions that initially SE was making headway in and looking to continue improving. Although i do agree SE are lacking in high end device's.
Marc
_________________
Nokia E61, 2gb Sandisk, Fring, Tom Tom 6
Honoured to have won BEST DEBATER
[ This Message was edited by: Dogmann on 2007-10-19 22:36 ]
--
Posted: 2007-10-19 23:29:03
Edit :
Quote
On 2007-10-17 04:32:33, mario2004 wrote:
@Max With all respect - what makes you think Se is popular? Market share below 10%. Third quarter profit dropped by a third. You call that 'popular' ?
SE Marketshare has been growing ever since SE started. So their popularity is growing also. Motorola for example are becoming less popular and SE are encroaching on their market.
Profit dropped because their profit margin has dropped as they concentrate on developing a mid-range market, but if their strategy is correct, as they increase marketshare with their "popular" mid range, they will lift profits back up again.
Profit is not a direct measure of popularity, marketshare is. Profitability is a measure of the ability to maintain marketshare over time. Within that equation spikes and lows in profitability are common.
--
Posted: 2007-10-20 05:30:18
Edit :
Quote
And by how much did the market share increase exactly since SE's birth? If I remember correctly Ericsson + Sony gave them a around 7% at start. Max market share was around in the middle of this year at about 9.6% and now it has dropped slightly at approx 9.3%. Even if is at 10%, that gives them the huge increase of just under 2.9999999% in what - 5years
Get serious. If you want to see a real market increase look no further than Nokia's last quarter. SE hasn't managed that 5+ years
If you ask me - SE and Moto are on the way down with Samsung and of course Nokia and maybe LG going up.
--
Posted: 2007-10-20 07:24:33
Edit :
Quote
@Mario
Prior to the formation of
in October 2001 the market share of
was around 7% and falling dramatically. Sony's hardly even registered. It bottomed out at something like 5.5% a year later and since then has reached 9.5%. so get your facts right. The difference between 5.5 and 9.5 is something like what? I'm guessing, a 75% increase over 4 years?
No mean feat, by anyones standards wouldn't you say?
Not that size is everything, but I guess you'd already know about that wouldn't you?
--
Posted: 2007-10-20 09:05:41
Edit :
Quote
@Golden Face
You logic is just crazy as then by your logic if i came into the market and got 1% and in year 2 it rose to 2% i have 100% growth amazing yet i still only have 2% big deal. The fact is that in 5 years they have only added approx 4.5% which is actually less than 1% a year so at this rate just another 20 -30 years and they may be No1.
@Max Wedge
Market share means nothing without profitability as anyone can have the biggest market share it's easy just sell your devices at cost. What counts is both profitability and Market share one without the other is pointless. Maybe you hadn't noticed but Nokia mange to grow both which is what makes them successful.
Marc
_________________
Nokia E61, 2gb Sandisk, Fring, Tom Tom 6
Honoured to have won BEST DEBATER
[ This Message was edited by: Dogmann on 2007-10-20 13:21 ]
--
Posted: 2007-10-20 14:21:27
Edit :
Quote
@Dogmann
Regardless of the mathematics, for a new venture to grab market share from already established players is good going. We have seen the BenQ/Siemens venture bite the dust and Motorola take huge tumble and SE have 2 years of profitable growth.
If Nokia's share grew at the same 'rate', its market share would be even larger than what it is now.
--
Posted: 2007-10-20 15:06:04
Edit :
Quote
On 2007-10-20 14:21:27, Dogmann wrote:
Market share means nothing without profitability as anyone can have the biggest market share it's easy just sell your devices at cost. What counts is both profitability and Market share one without the other is pointless. Maybe you hadn't noticed but Nokia mange to grow both which is what makes them successful.
But they still have profitablity! It didn't fall into the red. It's a dip only. You might be predicting that they will keep falling in profitablity untill they are inthe red, but that is by no means sure. My view, which is a perfectly logical one, only time will tell if it's right or not, is that the increase in sales will continue, and this will fund a rise in profits by the this time next year (or earlier). Don't forget the fall in profit was accompanied by an increase of 31% in sales. The sales are lower margin due to being mid-range sales, but if they keep the growth in sales going, then the profits will start to come back up again.
Anyway, I never said that marketshare was the ONLY thing that drives profitability. Obviously you need to have a product that is selling with some sort of profit margin. But if you sell a high number of devices with low margin, you can still make a lot of profit.
--
Posted: 2007-10-20 15:55:53
Edit :
Quote
Yes, indeed they increase the sales by 31% compared to last year this time. While that may sound like a lot, any market analyst will also look at the overall market growth over the same periode. If you substact that from 31 you'll see what the 'real' growth was. I personaly think the people are getting a bit too much of 'cyber shot' and 'walk man', even more so if they see cellphones without this brand names taking pictures and playing music just as good if not better.
This message was posted from a N70-1
--
Posted: 2007-10-20 21:20:45
Edit :
Quote
New Topic
Topic Locked
