Archive for the ‘market-share’ Category

Sony Ericsson Posts 50 Million Euro Loss

Friday, July 15th, 2011

Sony Ericsson was widely expected to post a reasonably strong showing for Q2, but dashing the expectations of analysts the company’s latest earnings report shows a 50 million euro loss. That loss was followed up by a dip in the number of handsets sold, just 7.6 million, which is a 31% fall from last year. As you would expect from those figures revenue also took a tumble, declining from 1.76 billion euros last year to 1.19 billion euros this year.

With a range of new handsets, chief amongst them the Xperia play and the Xperia arc, and a massive cost cutting campaign the obvious question would be why the loss? Well Sony Ericsson’s president. Bert Nordberg, is putting the blame on the Japanese earthquake, saying that it disrupted Sony Ericsson’s supply chain. It’s a fair comment, after all the earthquake and tsunami did have a huge impact upon the electronics industry and apparently, in Sony Ericsson’s case, resulted in the loss of 1.5 million handsets.

Is Sony Ericsson For Sale?

Wednesday, April 20th, 2011

Rumours about Sony Ericsson usually centre around new handsets or when a particular handset will get an update, etc, but Mobile-Review’s Eldar Murtazin, in a personal blog entry, has unleashed a new rumour … that Sony Ericsson might be for sale!

The jist of the speculation centres around an alleged conversation between Sony Ericsson and two Chinese companies back in March where Sony Ericsson is said to have “casually and completely “randomly” asked not whether they are interested to buy the rights to the brand, take all the commitments for the maintenance of offices around the world and content staff.” One of the companies involved is said to have been Foxconn, an electronics company that many of you will probably know better as one of Apple’s suppliers for the iPhone.

You can read Eldar’s full blog entry here.

The Mobile Phone: Winners & Losers

Thursday, October 7th, 2010

We’re in a period of almost constant change and there is no industry that embodies that quite like the mobile industry. Over the past three years the landscape has changed almost beyond all recognition with the established manufacturers giving way to the up and coming players. So just who is leading the pack these days?

Asymco have produced a series of graphs that attempts to answer that question. The first graph we see shows how the various manufacturers have performed over the past three years with respect to market and profit share. If the arrow is going up then profit share is going up, going down and profit share is going down. If the arrow is heading right then marketshare is increasing, heading left and it’s decreasing.

You will notice that Sony Ericsson’s arrow points in all the wrong directions. Profit share is down and so is marketshare. They’re the mirror image of RIM, which has steadily increased both. Notice also that Nokia and Apple are mirroring each other. Whilst neither company’s marketshare has risen or fallen dramatically their profit share has undergone some very dramatic changes.

In the two graphs below we can compare how each of the companies has changed over the last three years.

Again it is not good news for Sony Ericsson. In 2007 they had the third highest profit share and their marketshare was in the top four. Indeed they were only behind the real heavy hitters of Nokia, Samsung and Motorola (yes Motorola was a heavy hitter). That’s a pretty good position for a relatively small manufacturer.

Let’s fast forward to 2010 and Sony Ericsson are a shadow of their former selves. Profit share has gone into free fall and instead of being one of the highest is now one of the lowest. Unlike Nokia, which has managed to stem its marketshare decline even as profit share declines, Sony Ericsson has also seen its marketshare crumble away.

In 2007 Sony Ericsson was positioned to make a transition out of the ‘Marginal’ group, but just three short years later that seems like a pipe dream. Before we get too gloomy though Sony Ericsson has been taking some important steps to get itself back on track. For one thing they have made some painful cost saving moves not to mention embracing Android (even if they do need to move faster) and of course they have wisely ditched the shackle that is Symbian (Angus: they got rid of UIQ too!). Hopefully we see that little Sony Ericsson turning around and pointing up!

[via Asymco]

X10 Is DoCoMo’s Best Selling Smartphone … EVER!

Friday, May 14th, 2010

Sony Ericsson will no doubt be pleased with the news from Japan that the X10 has become NTT DoCoMo’s best selling smartphone  … ever! The X10 has reportedly sold 100,000 units within 20 days, beating the previous best smartphone result of 80,000 units in 10 months. You may be wondering where the ‘but’ is in this story and you would be right, there is a ‘but’, of sorts. Despite some initial concerns over sales the X10 has indeed sold very well in Japan, but it would be all too easy to accept the result at face value instead of putting it in context.

The previous best selling smartphone in in DoCoMo’s portfolio, as mentioned, sold 80,000 units in 10 months and that was the HT-03A, a handset not dissimilar to the HTC Magic. In fact if you look at the smartphones DoCoMo has available there isn’t really a great range to be blunt with the likes of the Blackberry Bold and even the HTC Touch Diamond. Japanese networks do offer some fantastic feature phones, but smartphones seem to be one area where they haven’t quite caught up with the rest of the First World (or even parts of the Developing World). Why is this? Well Japanese networks are notorious for their closed systems and proprietary services, something that smartphone OSs like Android don’t play well with. Indeed the X10 has been having trouble integrating into the DoCoMo ecosystem with things like i-mode mail, not to mention the performance bugs we have all come to know and love.

So is it a case of the X10 selling well because it’s the best of a bad bunch? Well a lacklustre line-up of smartphones in DoCoMo’s portfolio will certainly have helped the X10’s cause, but the handset itself must also be appealing to customers if they’re willing to forgo popular features like i-mode or the performance issues that have been identified. Whatever the case, Sony Ericsson at least have something to smile about.

[via Engadget]

Sony Ericsson Sees 292% Smartphone Growth

Friday, May 7th, 2010

With their finances looking a little better this year, after some heavy cost cutting and job losses it has to be said, Sony Ericsson could finally start to see some light at the end of the tunnel. Well that light seems to have gotten a bit brighter if their smartphone sales are anything to go by. Year on year from Q1 2009 to Q1 2010 Sony Ericsson saw its smartphone sales grow by an astonishing 292%. That’s one hell of an increase and it is seems to be chiefly dependent on sales of Satio and Vivaz. Importantly sales of the X10, Sony Ericsson’s current flagship handset, are not counted in the figure so it will be interesting to see just how that handset has affected the company’s performance, if not forthcoming handsets like the X10 Mini and Mini Pro.

[via se-blog.com]

Only 9,000 X10s Sold in Japan?

Sunday, April 11th, 2010

Earlier today (Note from Angus: that was yesterday Paul!) I was having a chat with Brandon Flowers (aka Mizzle) about the sales figures for the X10. Both of us were interested in how well it was selling, but of course neither of us, or pretty much anyone else outside SE for that matter, has access to that information. Well one man that does is Eldar who posted a rather interesting tweet the other day. Eldar mentioned that NTT DoCoMo, the biggest network in Japan, had ordered 50,000 X10s for the launch, but that they had only managed to shift 9,000 of them so far. That doesn’t seem like very many to be blunt and it raises the question of how well the X10 is actually doing, not just in Japan, but across all the markets it has been launched in.

It’s a hard question to answer for the reason I gave above, simply put few people have access to that information. The best we can do for the time being is to rely on anecdotal evidence and conjecture, neither of which are particularly useful here. Sure plenty of the people I know personally have bought an X10 or have been talking about it, but how representative is that? Looking at Google Trends we see a huge spike in interest in the X10 recently, but again that isn’t useful in answering the question beyond saying that the handset is generating some interest. That really only leaves us with one option, analyse the Japanese results and try to apply them to the rest of the world. However, we again run into a problem because of the nature of the Japanese market. Anyone familiar with the Japanese mobile market will know that it isn’t called the Galapagos of the mobile world for nothing. It’s a law unto itself and what applies in Japan more often than not doesn’t apply in the rest of the world. Given that the Japanese market is dominated by handsets made specifically for the networks there, and which sport their own heavily customised OS, and which often sport features uncommon, or non-existent, in the rest of the world is it fair to try and apply these results to other markets? I think not.

Having said all that it is worth reflecting on these results a little. If DoCoMo ordered 50,000 units that tells us that they expect to be able to sell at the very least the majority of those units. If they had forecast that demand would be around the 10,000 mark I don’t think it is unreasonable to suggest that they would have placed an order more in the range of 15,000 to 20,000 units. It is also worth mentioning that we don’t know what time scale DoCoMo expects to sell those 50,000 units in. A week? A month? A year? We have to accept that 9,000 units is low, but we just don’t have enough information yet to properly assess the matter. I’m making a few enquiries myself so watch this space.

UK MD Interview – 16 New Phones for 2010

Thursday, March 4th, 2010

Sitting drinking my coffee this morning I spotted a rather interesting interview given to Mobile Today by Nathan Vautier. Who is he some of you may ask? He’s Sony Ericsson’s head honcho in the UK & Ireland. The interview proved to be pretty interesting so I’ll give you the jist of it and cover some of the juicier points. The two main themes of the interview were essentially what SE would be doing this year and what they intended to do about the infamous quality control problems that have dogged them for the past year or so.

On the first point Mr Vautier was able to approach the question from a position of strength,. He made mention of the ‘Fab 5′ of course and reaffirmed that the X10 and Vivaz were key launch products for SE. He also mentioned that there would be a total of 16 new devices released in the UK & Ireland this year (including the Fab 5). That means we still have another 11 to go. Of course a number of them probably won’t be super high-end devices, indeed Mr Vautier made it clear that the Walkman brand was here to stay when he said that there would be a number of Walkman products from around the middle of the year and that they would be in the £100 range. That would indicate somewhere in the mid-range of the market.

Mr Vautier was also keen to point out that the overall portfolio this year, including some handset from last year, would be 26 handsets, which he hailed as a major reduction. This ties in with some opening remarks he made about how SE wasn’t going after market share or numbers. Of course they aren’t really in a position to go after marketshare or numbers at the moment, so there’s a bit of spin here, but the basic idea is sound.

In terms of quality Mr Vautier gave the answer that was pretty much expected of him … SE are taking steps to improve the situation. He gave some examples of how they’re doing that such as cutting the number of components they use to improve testing efficiency and restructuring their KPI system (key performance indicator) so that it focused on qualitative issues. He was eager to stress just how much work SE had done over the past 18 months to address the issues, but the proof is in the pudding as the saying goes. It’s easy enough to spot comments from concerned customers over upcoming products like the X10 so SE really do have to get these new handsets right first time to restore some of the confidence and trust they’ve lost.

You can read the full interview here.

Sony Ericsson Posts 1.043 Billion Euro Loss for 2009

Friday, January 22nd, 2010

Something of a mixed bag in Sony Ericsson’s annual figures, which were released today. On the face of it the figures don’t look particularly good with sales down from 11.244 billion euros in 2008 to 6.788 billion euros in 2009. Shipped units fell from 96.6 million in 2008 to 57.1 million last year and operating income plummeted from -113 million euros in 2008 to -1.018 billion euros in 2009. All that translated to a pre-tax 2009 income of -1.043 billion euros.

Sony Ericsson’s President, Bert Nordberg, talked about a refreshed portfolio as being key to the company turning itself around and in particular mentioned the X10, which many are viewing as the company’s best chance to catch up with rivals and inject fresh interest in the brand. Sales have suffered recently with the last quarter of 2009 seeing a 40% decrease year on year. Sony Ericsson put the blame for this on the shrinking global handset market, which saw an 8% decrease last year. However, they also pointed to “… a faster than anticipated shift to touch screen phones in the mid-priced sector of the market”. This may come as something of a surprise to customers and industry watchers given the popularity that mid-range touchscreen handsets like LG’s Cookie and Samsung’s Tocco Lite have enjoyed for more than a year now.

Throughout 2009 there had been speculation that parent company Ericsson was thinking of abandoning the joint venture with Sony, but both Ericsson and Sony contributed funding to the tune of 350 million euros to the venture, 50% of that figure coming from each parent. So far Sony Ericsson has used 255 million euros of that, but retain a 200 million euro fund for use over the next two years. Mr Nordberg pointed out that the restructuring costs and spending cuts were taking effect with Sony Ericsson’s debt being reduced.

Read the full statement here.

SE UK Market Share Rises 2%

Friday, January 15th, 2010

Things haven’t exactly been going well for Sony Ericsson lately what with delays on handsets, others being dropped and then of course there was Satio being pulled from sale late last year. Well on that very subject, Satio, it looks like it is starting to pull its weight and so it’s a nice change to be able to report some good news about Sony Ericsson.

After Satio was pulled from sale in the UK by the country’s two largest mobile retailers, Carphone Warehouse and Phones4U, Sony Ericsson worked hard to get their flagship device back on sale asap. Thankfully the wait wasn’t too long and it returned to sale fairly rapidly and by the sound sof things sales have been good. Richard Dorman, SE’s senior marketing manager in the UK, gives the good news “Since the Satio was reintroduced back into Carphone and Phones 4U, it has sold in very good volumes. According to GfK statistics, we’ve seen an increase in share of our contract business by a couple of percentage points since the Satio went back on sale“. Unfortunately he didn’t say what their actual market share in the UK was, but notching up a couple of extra points, and because of just one handset, is pretty good going!

Turning his attention to the X2 and the fact that it won’t go on sale in the UK Mr Dorman was keen to play the whole thing down “The X2 being dropped by Vodafone wasn’t great news,” he said. “However it was never going to be one of our ‘mega launches’ – it’s not all about the UK for us and it is being sold in other markets“. That seems like a little bit of a cop-out, but to be fair he’s right, the X2 was unlikely to have ever been a major launch for them in the UK. Mentioning a Q1 X10 release he sough to build the X10 up as filling in the gap, certainly it has been garnering more headlines and indeed positive feedback than the X2.

The UK has historically been one of Sony Ericsson’s best markets, at times their UK market share would even outstrip Nokia’s so to see them starting to recover, even if it is just a small step, is great news and hopefully indicative of a strong 2010.

[via mobilenews]

Aino Software Fault – Stock Kept At Warehouse

Thursday, November 26th, 2009

It’s not been a good week for Sony Ericsson, as we reported first Satio has been pulled from sale by the UK’s two largest mobile retailers and now Aino is facing problems too. Both Carphone Warehouse and Phones4U have apparently not taken delivery of new Aino units for sale until unspecified software faults are addressed. A spokesperson for Sony Ericsson confirmed the problem, saying that Sony Ericsson was “… aware of a reported software issue regarding the Aino handset and using the touchscreen interface in particular“. The spokesperson stressed that as only a handful of units had been sold in the UK to date the problem wouldn’t affect too many people.

Stock of Aino is apparently being held at warehouses until the software issues are addressed. One staff member told Mobile Today “We were waiting for the Aino but then we were told there are Blue Tooth software problems with it and that they are being held back in the warehouse“. A Sony Ericsson source contacted by Mobile Today said “All new products are being shipped in and anything in the channel will get reflashed at Sony Ericsson’s cost“.

Sony Ericsson have said that they expect Satio to go back on sale in a matter of days, not weeks, and the problems with Aino are apparently not related to the problems Satio has experienced. However, given how high profile these handsets were made to their image may be forever tarnished in the eyes of consumers and might simply reinforce an image of Sony Ericsson producing poor quality handsets after the trouble the manufacturer had with the likes of the W910, K850 and W580.

The effect of all this on Sony Ericsson itself is said to be depressing with Mobile Today quoting sources close to the company as saying “This is going to kill them – they are being slowly killed. Internally, people are wanting to leave, motivation is terrible“. The first half of this year has seen Sony Ericsson’s UK market share drop from 21% to 15% and these fresh problems are sure to take a heavy toll on the beleaguered company. At this point the only bright spot for Sony Ericsson seems to be the X10.

[via Mobile Today]