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Record quarter caps a record year for Sony Ericsson |
bart
Joined: Feb 03, 2002
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From: Flanders
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any link to the CNN interview? |
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Residentevil
Joined: Feb 29, 2004
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On 2007-01-18 11:54:23, goldenface wrote:
@London Andy
Well they have also purchased big stakes in their manufacturing plants too so they have more control of the whole process. They did have a bad reputation for running short of handsets, which must have affected sales figures - I remember it happening with the W800i after it was launched.
Whats needed now is a nice selection of Cyber-shot handsets - 20MP upwards, they need to capitalise on the success of the K800i. The 5.0MP cam is bound to be a hit - as long as the design is right then there is no reason why it shouldn't be as successful as the K800i.
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Esato - Phone of the Year 2006. Vote Here!
[ This Message was edited by: goldenface on 2007-01-18 10:54 ]
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I don't think you win the war with hardware. Those are most the time off the shelf parts. It is about he right selection and SW. IF you can provide a better quality handset for the same price you can beat all of them. And I have to say it again. SE needs to hire somebody who knows how Hardware works and can write killer FW.
Tough times don't last, tough people do!
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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Sony Ericsson poses an iPhone Threat
By Tero Kuittinen
RealMoney.com Contributor
1/19/2007 9:26 AM EST
Soon after Motorola and Samsung signaled serious margin disappointments, Sony Ericsson delivered slamming fourth-quarter phone numbers.
It hit the jackpot by nurturing a savvy music strategy. The triumphant progress of the Walkman phone juggernaut is a warning to rivals ranging from Apple to Nokia.
SE is no longer a niche player; it is now a real contender to be the lead brand in an important device segment. Music phones were dismissed as a curiosity in 2004. They are now a vitally important part of the handset-upgrade market.
The contrasting strategies between Samsung, Motorola and Sony Ericsson could not be more intriguing. SE more or less opted out of chasing two hot trends: pricey thin phones and China/India cheapies. Yet even as Samsung and Motorola hit some serious margin trouble in the fourth quarter of 2006, SE extended its spectacular 2006 run.
It's possible that opting out of trends that other top-five vendors are pursuing is a winning formula if you find your own niche to exploit. And it seems like the music phone niche is the one that SE truly understood in a very mature kind of way.
SE's volume success during the 2006 fourth quarter was remarkable -- almost 75 million units, up from 51 million a year earlier. This was achieved with the average sales price (ASP) at a stunning $189 -- a niche-specialist ASP with mass-market volumes.
Meanwhile, several top phone vendors are locked in an arms race measured in millimeters: Who will get below 10 millimeters first with a mass-market model? While slim handsets proliferate, music phones with solid user interface and content-distribution/management software are anything but common.
SE grabbed this ball and ran with it in 2006. Perhaps this happened partly because the music-phone market was widely derided as a burial ground for flops back in 2004. The early models were clunky, and memory was expensive. The iPod seemed invincible. Most phone vendors dialed down R&D of music phones, which did not seem to be a viable mass-market segment.
By the start of 2007, it's clear that music phones can indeed be the very core of the Western handset upgrade market.
more
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Bambino
Joined: Sep 17, 2005
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On 2007-01-18 15:37:17, ares wrote:
Good job SE, now we need some kick ass phones announced 
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Kick ass fone = uiq |
Residentevil
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From: Raccoon City, USA
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I am with you. UIQ
Tough times don't last, tough people do!
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shaliron
Joined: Jan 15, 2006
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From: Melbourne, Australia
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@goldenface
Great article 
SE really knows what it's doing.
A wooden spoon is a spoon made from wood. Source: WikipediaWinner of: Best Thread (Huge SE Portfolio) 2007, Best Post (Huge SE Portfolio) 2007, Best Signature 2007, and 2nd Best Nickname 2007. |
goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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@shaliron
Well the strategy seems to be working - let the big boys wipe out their profits, fighting to establish an early presence in the emerging markets, then when they have been opened up, they have nothing left in the pot for R&D etc.
Thats when  walk in.
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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LG fourth-quarter profit plunges 85%
(Mobile division 70%)
seems to be the only one to come out with some good news recently.
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Dups!
Joined: Sep 24, 2006
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From: GMT +2
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@goldenface- was just watching that on Cnn. It is clear who's on the rise in this area, the competition had better prepare cause it's not going to let up.
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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@EMS06
You see I can't see demand for Camera-phones and Music-phones going away any time soon, whilst devices with things like wi-fi are still niche products and will be for a while.
Slim phones are quite expensive to produce so gunning for that sector is a bigger risk than normal - if you don't get it right first time then millions can be lost.
The above article puts it nicely when describing the current trend for ultra-slim phones - Clunky but smart V Slim but Dim 
From what I can gather, the new ultra-slim Ai isn't particlarly ground-breaking technologically but you can bet has managed to make it quite cheaply.
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Residentevil
Joined: Feb 29, 2004
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From: Raccoon City, USA
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You have to mention, that that was for LG as a entire company. The mobile devision did ok.
Tough times don't last, tough people do!
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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@Residentevil
Quote:
| from the bloomberg article:
"Profit from mobile phones, LG's biggest business by revenue, fell 70 percent to 59 billion won, missing analysts' estimates, as handset prices dropped. Sales at the division fell 11 percent to 2.19 trillion won. The division was projected to report 74 billion won of profit on sales of 2.18 trillion won.
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It seems their profits fell 70% from the price-war as well as a decline in sales - which when you consider that the market as a whole is growing, isn't good news.
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Esato - Phone of the Year 2006. Vote Here!
[ This Message was edited by: goldenface on 2007-01-23 14:20 ] |
shaliron
Joined: Jan 15, 2006
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From: Melbourne, Australia
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Well SE has done admirably considering its size in relation to Nokia etc.
Remember how annoyed we were when SE separated  and Cyber-shot. Well it's done wonders for their profits, and we were wrong.
And the strategy is probably going to continue in 2007, plus the promise of slim phones for the fashion area.
A wooden spoon is a spoon made from wood. Source: WikipediaWinner of: Best Thread (Huge SE Portfolio) 2007, Best Post (Huge SE Portfolio) 2007, Best Signature 2007, and 2nd Best Nickname 2007. |
*Jojo*
Joined: Oct 15, 2003
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Congrats ! But you still have to BEAT - Nokia, in order to take the #1 SPOT !
[addsig] |
*Jojo*
Joined: Oct 15, 2003
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Congrats ! But you still have to BEAT - Nokia, in order to take the #1 SPOT !
[addsig] |
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Posted: 2007-01-18 16:18
