Sony Ericsson Says More Demand for Expensive Handsets in Emerging Markets
17 May 2007 by axxxr Sony Ericsson Research said consumers in emerging markets are starting to replace their first, cheap phones, creating an opportunity for more expensive models. What we are seeing is definitely that in so-called emerging markets...there are replacement cycles already happening fairly quickly," Sony Ericsson head Miles Flint said at the Reuters Global Technology, Media and Telecoms Summit in Paris on Wednesday. "People in emerging markets don't just want cheap phones, they want good phones," he added. Flint said the Sony Ericsson does not compete much in the ultra low-end of the market of $20 to $30 handsets, a segment dominated by Finnish rival Nokia. "We have been consistently saying that we are not intending to go to the ultra low parts of the market where I think one vendor has a very strong cost position," Flint said. Asked if Sony Ericsson, the fastest growing of the top five handset makers, was benefiting extra from troubles at Motorola "I think it's a little bit early to tell." "Our second quarter volumes are pretty much where we expected them to be at the moment. The second quarter is running in line with our own estimates," Flint said. To boost its presence in the lower end of the one billion units a year global cellphone market, Sony Ericsson has clinched a deal with French rival Sagem to develop entry-level models. Last year, Sony Ericsson also developed three phone models in China, where it has a large factory, and it will start producing cheaper handsets in India. "China is ceasing to be just a low cost location. It's an attractive location in terms of value creation not just cost avoidance. Many of the Chinese we employ are rightly sensitive about being seen as just low cost," Flint said. The imminent launch of Apple's iPhone will be at the high end of the market, in Sony Ericsson's profitable sweetspot of music phones which carry the Walkman brand, but Flint is not too concerned. "Our devices are phones first, and I hope you never see a single device from us that isn't first and foremost a really good phone," he said. "We have broadened that for the consumer with music and imaging. The iPhone approach is different, coming at it from the PC area of the market." source:reuters 
Comments On 23 May 10:47 jeddah wrote is w810i fone okei??.. On 19 May 01:02 SeF wrote Then Miles Flint would think that broadening the P and M series smartphone range will also benefit those users who want expensive phones with glamorous features too. so that SE smartphone series can really take good way towards the smartphone market=D On 18 May 01:24 togettothehighend wrote SonyEricsson to get on the high end phones, they have to add to all phones 1st of all, all the GSM networks so it can be totally and truly a World phone. for me I think that the P series must be a quad band. I know Europe is a better costumer for GSM but hey... here in USA we are costumers too that love the specs on the SE Phones, but the lack of the GSM850 you have not many choices to get a good service. On 17 May 17:29 sleepingman wrote I want a proper high end, high Tec fashion phone. > 3mp camera with AF, Walkman and S500i style phone On 17 May 17:07 Turboy wrote Yeah, they realize it but where are the high end stuff then? On 17 May 16:27 mobilemodman wrote took them a while to realise it, I mean enuf with the crap low+mid range, we want some non-chunky smartfones like the P1, but with walkman!! On 17 May 15:18 vul wrote thats rite i want a upgrade no my phone 2. On 17 May 14:12 SE wrote The statement of "Our devices are phones first, and I hope you never see a single device from us that isn't first and foremost a really good phone," is so true A perfact example is the M600i/P990i which both aim at PDA phone market. By comparing with other PDA phones in the market, like Dopod 838 Pro, O2 atom... SE's handset is truly a phone with PDA functions added on (may be 70% phone 30% PDA) while the others are just a PDA with phone functions (80% PDA 20% phone). Thats why SE's PDA phone's calling quality is so much better when compare to other PDA phones! Would be interesting to find out how well iphone will couple with the calling quality! |
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