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2009 to be a... challenging year for Sony Ericsson
NightBlade
post 2009-01-08 23:18
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Sony Ericsson's CEO, Hideki Komiyama, predicts that the cell phone market during 2009 will be very tough, the main reason for this being the low consumer demand due to the global economy crisis. Despite that, in an interview with Reuters at this year's CES, he stated that "others are falling apart but we are holding up," referring to their main competitors, such as Nokia, Samsung and LG. He also points out that, despite the fact that they overtook Motorola's No.3 place in the mobile phone maker leaderboard in the third quarter, their shipments volume wasn't all too different in comparison to the previous quarter.  Rather, he attributes their change of  position to competitors' weak performance. That's why they're waiting for the Q4 earnings report, in order to make official estimates about 2009.

Here comes the good part, though. They'd realised that they haven't exactly reached those profit margins in the low-double-digit percentage range they've been targeting since 2007. That's why they're rethinking their sales strategies. They plan on releasing more high-end devices, rather than the less profitable low-end ones, even if it means releasing less products than originally planned. They've been doing exactly the opposite the last 2 years.

He also hinted that they're developing some kick-ass smartphones for 2010, but refused to give any further info. "At this moment we're under heavy rain. You have to look for shelter. But when you're in the shelter you start preparing, for a recovery", he said. Hit the source link for more info.

Source: Reuters

From the Unofficial Sony Ericsson Blog:
http://blog.se-nse.net/2009-to-be-a-challe...-sony-ericsson/.


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Ly
post 2009-01-08 23:32
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Hmmm, I hope they pull through 2009 smile.gif


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Snowiffic
post 2009-01-09 15:39
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YAY! More high-end phones!


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photographer
post 2009-01-09 15:42
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Wohoo, high end phones! Who wants a J100 lol ^^ SE has a youthfull image and dull low end phones don't fit in that imo...


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WizaJ
post 2009-01-09 16:52
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Exactly, the youth is at the forefront of expectations of technological prowess. We just can't get enough wink.gif


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Step666
post 2009-01-09 20:08
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But younger people don't necessarily have the same spending power, so you have to balance your appeal.
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MWEB1
post 2009-01-09 20:17
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"SE has a youthfull image", you seen my line up recently smile.gif
SE is in better shape than ever IMO.


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Mattwood
post 2009-01-09 20:21
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QUOTE (Step666 @ 2009-01-09 20:00) *
But younger people don't necessarily have the same spending power, so you have to balance your appeal.


Step read something similar on mobiletoday or mobilenews, but it included him stating low end handsets were also key.


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Step666
post 2009-01-09 20:22
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On where or where?
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Mattwood
post 2009-01-09 20:27
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QUOTE
However, he added that in some markets the company still needs a mix of high-end and cheaper phones.

here this isn't the story I read but I guess it'll do



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Step666
post 2009-01-09 20:33
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Hadn't seen that myself.

But, I have commented on here in the past that low-end phones are the industry's bread and butter.
Sure, they don't grab the headlines and you don't make as much profit on each handset but if you pump 'em out in the millions, it all adds up.
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Mr.Phear
post 2009-01-10 15:48
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QUOTE (Step666 @ 2009-01-09 15:25) *
Hadn't seen that myself.

But, I have commented on here in the past that low-end phones are the industry's bread and butter.
Sure, they don't grab the headlines and you don't make as much profit on each handset but if you pump 'em out in the millions, it all adds up.


Only if the consumer buys it, though. Which I'm not sure people do. Here in the US if people want a low-end crappy phone, they go and buy a Samsung, LG, etc. Don't know about you guys across the pond.


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recl
post 2009-01-11 11:27
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He also hinted that they're developing some kick-ass smartphones for 2010, but refused to give any further info.

ok then i'll buy a decent feature phone from them in 2010-2011

This post has been edited by recl: 2009-01-12 15:29
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