X
Tech

Sony makes inroads into mobile market share

Consumer giant Sony is preparing to make its mark in mobile phones by setting up a joint venture mobile handset company with Ericsson.
Written by Ron Coates, Contributor

Consumer giant Sony is preparing to make its mark in mobile phones by setting up a joint venture mobile handset company with Ericsson.

The new London-based company will be a 50-50 joint effort, although last year Ericsson sold 43 million handsets and Sony only 7.5 million. The companies said they will create a new handset brand, but will continue to market existing products. Sony Ericsson Mobile Communications will concentrate on design, branding, sales, marketing and research and development. Ericsson's loss-making mobile division has already handed over its manufacturing to US outsourcer Flextronics. Tim Sheedy, analyst at IDC, said: "We've been wondering which company Sony would go with. Ericsson was showing some wear and tear and Sony has that expertise in getting products to the market on time while taking into account customer needs, national variations, differences in taste and markets. "The Walkman range has over 2,000 distinct products worldwide. The mobile makers struggle to get possibly ten models out on time." Mat Hanrahan, senior analyst at Bloor Research, agreed. "I've said that the Japanese are coming for over a year. When you take that consumer knowledge and expertise, you'll see them making real inroads in the mobile market." The Ericsson job cuts will bring its mobile division down to 5,000 staff from its peak of 17,000 last June.
Editorial standards