CEO Says SE Needs Better & More Expensive Handsets! Options

[scotsboyuk]

SE's new chap at the top, Bert Nordberg, is increasingly looking to be someone that is going to do some ass kicking at Sony Ericsson. Why do I say this? Well let's look at an interview he recently gave to a Swedish website. In the interview Mr Nordberg made some comments that should give Sony Ericsson's beleaguered customers a little bit of hope that we may at last, at long last, be seeing the company turn in the right direction.

For one Mr Nordberg wants to see Sony Ericsson return to profitability by next year. That's a bold statement to make considering the losses the company has sustained over the past year ad the fact that the global economic recovery is still in its early days. Indeed the website conducting the interview made a point to note that most analysts are still looking at 2011 before SE can once again turn a profit. At any rate it's a sign that Mr Nordberg is aiming high at least.

Next on his list is to cut the number of managers at Sony Ericsson. He says he wants a 'flatter' structure, most likely meaning a lot less bureaucracy (which if you've ever dealt with Sony Ericsson you will know can be headache inducing).  It's also about economics though, reducing the number of managers will save Sony Ericsson money. As you may recall Sony Ericsson has already implemented job cuts, with more than 2,000 jobs already having gone. It's never a good thing when someone loses their job of course, but hopefully these measures see the company turn a profit again all the sooner and enable them to start creating jobs again.

Mr Nordberg saved the best for last though when he talked about the main road to profitability ...better and more expensive handsets! His actual statement being:

We should spend more on advanced phones and raise the average selling price ... We will not chase market share by selling 25 dollar phones in India

It almost brings a tear to your eye. It actually sounds like the Sony Ericsson of old again. It looks like the big bold handsets that enter the market to kick ass are coming back thanks to a CEO who, as I said, looks to be kicking some ass too with his call for "swift and decisive action".

[di.se via se-blog.com]

Read the interview here (Swedish) and here (English translation).

From the USEB:
http://blog.se-nse.net/ceo-says-se-needs-b...nsive-handsets/.

[black_mamba]

Atlast this man is thinking of some strategies !
Hope he really revamps' SE.....

This post has been edited by black_mamba: 2009-10-19 15:19

[photographer]

Let nokia take the 2nd grade market in poor countries while SE retakes its premium position back... finally.

[RockHell]

Lets hope this can be a turning point in the story of SE

[Dups!]

I still think they need to strike the perfect balance of expertise of these companies. They were trying that when they started out and made healthy profits. Then they started getting complacent, lazy and relied on Sony branding with not much innovation.

I'm happy the man is from Ericsson, no offence to Sony or its CEO, but Ericsson's innovation and vast expertise IN PHONES is what SE needs more at this stage. Coupled that with great management and carefully planned and executed pricing and marketing strategies then there is no way SE can fail.

Good luck Bert! I wish you and SE prosperity.

[scotsboyuk]

Yes a little less brand reliance and a lot more innovation would be nice.

[Manny]

I agree with that

[Corman]

Better phones, yes, more expensive ones, no

[Mattwood]

Call me negative - wont happen, SE wont go back to the good old days, to much damage has been done over the years.

They can cut as many jobs to stream line as they want, it's the damage they have done to the user base that is the most crucial point of all.
I know for one I will never spend another penny on a Sony Ericsson handset, to may false promises made, WAY below par handsets on many levels. I am sure I am not the only one, around the world I imagine there will be thousands like me. Sony Ericsson forced me into the hands of other manufactures and tbh they offered more stable devices than Sony Ericsson could (since K750 thats the last 'great' handset they have produced)

I will continue to have a 'play' with there devices but it will take something special to rekindle the flame I once had for Sony Ericsson.

(such a shame really so much wasted promise)

[scotsboyuk]

I totally understand that sentiment Matt and tbh I think you are right when you say there are many others who feel the same. The past couple of years have seen Sony Ericsson produce some awful handsets, not necessarily the idea behind the handsets, but their execution e.g. cutting corners, poor quality, late releases, etc. They did a lot of damage to their brand with that nonsense. Having said all that what I do like is Mr Nordberg's attitude, he seems to realise that Sony Ericsson rose to prominence by making a certain type of handset i.e. high quality, high spec handsets and it's at least encouraging to see him say he wants a return to that.

[RD274]

We should spend more on advanced phones and raise the average selling price ... <span>We will not chase</span> market share by selling 25 dollar phones in India

If only he'd check the stats. The amount of revenue LG and Nokia are making in the market by selling "25 dollar phones in India", he'd change his mind!

[MikLSP]

Sounds like the sort of guy they need, let's just hope he hates S60 and has some intense relation at Android HQ and maybe SE will get back on the right track

[scotsboyuk]

If only he'd check the stats. The amount of revenue LG and Nokia are making in the market by selling "25 dollar phones in India", he'd change his mind!

To be fair though Sony Ericsson never had a reputation for that though. SE built it's reputation on high quality feature packed handsets that tended to be at the higher end of the market. Of course there is room for the lower end products, but at the same time they need to keep their core market going strong and their core market was always the mid and high-end developed markets.