Sony Ericsson’s focus on High- end phones undeterred by flat growth and market share

Added: (Thu Jan 19 2006)

Pressbox (Press Release) - Sony Ericsson in its endeavor to become the leading global player and provider of applications is forging partnerships with application developers and content providers.

The global strategic agreement with Sony Music Entertainment is one way in which the company intended to square off against other cell phone stalwarts, by providing the best and latest in entertainment and content to its users.



At the time of the alliance Sony was not even among the top five contenders and Ericsson’s market share had dipped to an abysmal low of 7.4% in 2000 as compared to 1999.The strategic agreement was seen as an effort to infuse new life into the companies' languishing mobile phone units and take market leaders Nokia and Motorola head on.



As per a recent market research report called” Competitive Analysis of Sony Ericsson Mobile Communication” published by RNCOS, experts believe that “Sony Ericsson’s growth rate remained largely flat at 5% year on year”.



Research shows market share declining to 12% in 3Q05. However, growth in revenue is indicative of Sony Ericsson's high-end portfolio with a focus on imaging, music, gaming and connectivity.



Sony Ericsson’s continuous march towards operational excellence outpacing its market rivals is responsible for another financial quarter of strong performance.



The report also quotes that the company’s marketing strategy of “high-end models will have only one-year life cycle, then their prices will be lowered and they will become mass products”



Sony Ericsson has been successful as a global player because of its consumer-focused strategy and technical expertise.



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