Posted by goldorak
Here:
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Technology%
20News&s1=blk&tp=ad_topright_tech&T=markets_box.ht&s2=ad_right1_
technology&bt=ad_position1_technology&box=ad_box_all&tag=technology
&middle=ad_frame2_technology&s=APl6vhxVSU29ueSBF
02/27 19:38
Sony Ericsson's Future May Hinge on New Phones, Analysts Say
By Philip Lagerkranser
Stockholm, Feb. 28 (Bloomberg) -- Sony Ericsson Mobile Communications Ltd.'s survival may hinge on the new phones it unveils next week, the first models developed by the unprofitable venture, analysts said.
Sony Ericsson, the handset venture between Ericsson AB and Sony Corp., introduces the new phones on Tuesday. Sony and Ericsson have designed previous models such as the T68i separately and then shipped them under the Sony Ericsson brand name.
``This is make or break,'' said Ben Wood, an analyst at Gartner Group Inc.
The 17-month-old venture, which promised to be profitable from the start, has lost 3.8 billion kronor ($450 million) and market share as its phones took too long reaching stores and were too expensive. Sony Ericsson, combining Sony's branding and design skills with Ericsson's radio technology know-how, initially aimed to unseat market leader Nokia Oyj by 2006.
That target will be ``very hard'' to reach, company President Katsumi Ihara said in an interview in Cannes last week.
Ericsson and Sony agreed in April 2001 to combine their mobile-phone units after years of losing ground to Nokia. Ericsson lost 24.2 billion kronor on its handset business in 2000, raising pressure on Chief Executive Officer Kurt Hellstroem to find a partner for the division.
The new releases come a year after the company introduced its first co-branded European phones. The venture unveiled additional products in June, including the T300 color-screen phone.
Wobbly Start
In 2002, Sony Ericsson's first full year of business, the company stumbled as Nokia brought out a record number of new models and phones by Samsung Electronics Co. grew popular. Sony Ericsson models such as the P800, which doubles as a personal organizer and has a camera, and the low-end T200 were delayed.
Other models flopped. Sony Ericsson in July stopped making its Z700 gaming phones because of insufficient demand. The company, which was No. 3 when the venture was announced, is now in fifth place after being overtaken by Samsung and Siemens AG.
Ihara said the venture's fortunes will turn this year.
He expects Sony Ericsson to increase market share after adding cheaper phones including the T100 and adapting design to local tastes. The company gained market share in the fourth quarter from the prior three months, Ihara said.
Sony Ericsson needs 7 percent to 10 percent market share to reach a target of posting a full-year profit, according to Jan Waereby, head of marketing and sales. The company had about 6.2 percent of the market in the fourth quarter.
Ericsson and Sony last month agreed to invest another 300 million euros ($323 million) in the venture, giving the venture more time to become profitable.
Yet Sony Ericsson's resources are dwarfed by those of Nokia, which ended 2002 with 8.8 billion euros of cash.
``They shouldn't even try to compete with Nokia,'' said Karri Rinta, an analyst at Evli Bank. ``Nokia's overall scale is so superior.''
[ This Message was edited by: goldorak on 2003-02-28 15:09 ]
[ This Message was edited by: laffen on 2003-03-01 11:08 ]
Posted by jellyellie
i don't like that last comment, a bit biased.
Posted by MrSavoy
I think SE is positioned to take back their 3rd place spot in market share this year. If everything we have heard about the new line of phones is true and if they can reach market in the time they forcast they will do it. Their new phones look amazing and if the price is decent enough people will buy them. To beat Nokia will take years if it's at all possible at this point. To be honest I don't care if they ever unseat Nokia, all I (we) want is for SE to get to 3rd place at least and become profitable so that they are here for the future and we can continue to get kick ass inovative products like they are known for. Lets the rest of the masses use the jelly bean like Nokias, the select few that appreciate SE's products will buy them for years to come as long as they do their part. I for one think they can and will do it. GO SE!!!!
Posted by jkirimis
Couldn't agree more with you MrSavoy...
They must focus to get a 10-14% of the market... If they reach this target, then 1st place will come naturally through the years to come.