Sony Ericsson Breaks On Smartphones

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Sony Ericsson Breaks On Smartphones
Sony Ericsson was already in the news from past two weeks. Both the Sony and Swedish company Ericsson has been operating together from past 10 years and has produced different kind of handsets for different range of users. Recently there were rumors that the Sony is to acquire Ericsson.

 

Now, again the company is in news with it complete transition to smartphone business. Sony Ericsson was in plan to completely transits there business into Smartphones so that they could make up the losses being made previously. From past two years there is a dull business being made by the joint venture.

According to the Sony Ericsson CEO Bert Nordberg of the company, today the joint venture is accounting its android smartphones for overall sales of around 80%. He also added that till date the company has sold out 22 million units of Xperia series handsets only. But it is quite unfortunate that the company cannot balance the losses which might affect if the Symbian and feature phone business is to freeze in the near future. Even though the average selling price was in increase to an average of 8 % ever year, but that also cannot make much difference. Another major threat again for the company is more mid range consumers finding it comfortable to up grade their future phones to lower version of android phones.

It is in the third quarter that the company happened to face more breaks. Where as the business in the second quarter was pretty good. According to the CEO, Sony Ericsson today holds around 12 % of the global android business, which is a positive sign and is expected to be improved in the near future. Moreover in the third quarter of previous year the company could hit a profit. This concludes that Sony Ericsson has positive sides also. If the company could push more android phones into the market at a steady pace targeting mid rage consumers, then they could make up the losses. There is a huge mid range market wide open for the company to capture, but the competition in this market segment is also high.

 

On questions related to the acquisitions strategies adopted by the company, the CEO did not comment any thing. All he focused was on the current situation and the enhancement of Smartphone business. In the global market consumers are more delaying to update there handsets and it could be considered as a threat for mobile industry as a whole, the CEO concluded.

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