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Sony Ericsson Thrives While Nokia Dives |
senninha
Joined: Jan 05, 2003
Posts: > 500
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article from www.thefeature.com (a nokia-owned site)
The two company's latest earnings reflect the new landscape of the handset business.
Nokia unsurprisingly reported disappointing second-quarter earnings Thursday, with a 14-percent rise in profits offset by weaker sales. But even more damaging was the company's admission that sales and earnings in the current third quarter would come in well below last year's levels and analyst expectations due to continued intense competition but also from the deep price cuts it has enacted in an attempt to regain market share.
One problem hurting Nokia at the moment is that its major rivals are all performing well -- this is perhaps the first time that the rest of the top five or six vendors have been able to collectively and consistently execute at the same time. Sony Ericsson is no exception: the joint venture reported its fourth consecutive profitable quarter, with huge jumps in revenue and profits over the same period last year. Like Nokia, the company's average selling price is slipping, but attributes that to a changing product mix of more relatively cheaper GSM handsets than expensive Japanese models.
The company's differing fortunes clearly show what's going on in the handset business. Sony Ericsson's devices are developing a reputation as leaders in multimedia and imaging, and the company is riding the sustained popularity of models like the T610 and P900. Nokia says that its imaging products were the only segment that lived up to or exceeded expectations, and sales at its multimedia unit were up 24%.
Sony Ericsson's laser-beam focus on these products gives it an undeniable edge in today's market, while Nokia's intense belief in rigid segmenting could be undermining it. The company's reputation among consumers for innovation and exciting products has withered, and the attention it pays to mass-market, low-end handsets, particularly for developing markets -- Nokia's much bigger, more general mobile-phone unit rang up EUR 4.2 billion in sales, while the growing multimedia unit was only EUR 739 million -- seems to be taking away from resources that could be devoted to mid-range and high-end models where competitors like Sony Ericsson, Motorola and Samsung are eating its lunch.
Nokia's discovered that it takes a lot less time to lose a big chunk of market share than to gain it. The company's size and strength in the market lets it make short-term strategic moves, like its current price cuts, and makes them somewhat effective. But Nokia must make the fundamental changes to which its executives recently alluded to compete in this market. Its rivals are moving more quickly and nimbly, and are faster at coming out with more appealing handsets. The days are gone when everyone followed Nokia, and the company is now squarely back in the middle of the pack. It's got a lot of pushing and shoving to do to get back to the front.
[ This Message was edited by: senninha on 2004-07-16 02:16 ] |
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Devilishcry
Joined: Nov 17, 2002
Posts: 226
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Is there any source for this very exciting scoop? If it turns true, then the sunshine is finally coming to SE!
R.I.P Nokia then.... 
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[ This Message was edited by: Devilishcry on 2004-07-15 20:10 ] |
marik
Joined: May 31, 2004
Posts: 370
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Yeah i heard that on BBC...i think. I kind of feel sorry for Nokia though...but this might be good. It might give Nokia the inspiration to make better phones. Not that i want them to excel over Sony ericsson of course 
[addsig] |
masseur
Joined: Jan 03, 2003
Posts: > 500
From: Sydney, London
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for more info here are the individual  and nokia threads on this topic with press releases from each
Sony Ericsson reports continued growth in shipments, sales and profit
Nokia's Q2 2004 results. not looking very good.
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BOOYAR
Joined: Aug 19, 2003
Posts: 310
From: UK
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Woopee
This message was posted from a T610 |
*Jojo*
Joined: Oct 15, 2003
Posts: > 500
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Yup! That report was a big news to both - BBC and CNN yesterday  They say that even Samsung's clamshell fones are doing better than those of Nokias when it comes to sales  That's why Nokia is planning to lower it's prices to about 10-15% just to cope up with the market share and also their projected target sales for the qtr. Yup! SE sales is doing far better to that of Nokia |
shyam335
Joined: May 25, 2004
Posts: > 500
From: 127.0.0.1
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Good to hear that se does a good job.let it enable then to produce good new phones.
But se is not strong in low end market.they should also produce good low ends too.
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Residentevil
Joined: Feb 29, 2004
Posts: > 500
From: Raccoon City, USA
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As I said SE rulez and Nokia droolz.
Tough times don't last, tough people do!
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plasmadog
Joined: May 06, 2004
Posts: > 500
From: Beantown, India
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Maybe se phones are popular cos of esato. So, congratulations esato
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Krubach
Joined: Dec 05, 2002
Posts: > 500
From: Sunny Portugal! :)
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Quote:
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On 2004-07-15 21:48:02, plasmadog wrote:
Maybe se phones are popular cos of esato. So, congratulations esato
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Sure they are! Hurray Esato! Hurray to all of us.
The best publicity can get!
[addsig] |
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Posted: 2004-07-15 20:36
