Sony Ericsson CEO, Bert Nordberg, has given an interview to Swedish site sydsvenskan.se in which he mentioned several things such as Play Now Arena allegedly having 45 million customers (I can only assume that’s “potential” customers and not those actually using the service) and that SE have discussed the use of Windows Mobile 7 with Microsoft but the most surprising piece of information is related to Google and the Nexus One.
Nordberg admits that Google approached Sony Ericsson with an offer for them to manufacture the Nexus One before asking HTC, in his infinite CEO wisdom he turned them down! That’s right, Sony Ericsson could have been the manufacturer of the highest profile Android device to hit the market to date but apparently felt they don’t need such an affiliation. Nordberg cited preservation of the Sony Ericsson brand as the reason behind this decision but was it a good one?
Android gets a lot of press at the moment as it continues to gather momentum and the “Google Phone” was talked about as much as anything on the internet. Now it has finally come to light as the Nexus One, is the brand recognition exclusively Google or do we all clearly know that it is produced by HTC? Have HTC suffered from a diminished reputation as an independent manufacturer or gained more brand awareness than ever before? Have they been unable to produce devices under their own moniker? We certainly do know that the Sony Ericsson brand isn’t exactly at it’s peak right now and this could have been a chance for them to establish themselves as the premier Android manufacturer…any guess who would currently be regarded as that? Personally I think that Sony Ericsson would have benefited from such a high profile collaboration, especially seeing as they are currently basing so much of their future success on Android. Being known as the manufacturer of choice for Google would only boost the reputation of Sony Ericsson’s other devices and keep them in pole position to take advantage if Google’s plan really pays off.
Perhaps then it was Google’s new approach on distribution that was the real problem, Nordberg also said:
“It would be in itself an alternative way out to the market but we’d rather by their own efforts on the important U.S. market”
On this angle I’d have to agree. The Nexus One hasn’t set the world on fire in terms of sales figures and that’s quite probably due to the limited global availability and lack of any presence of the device in good, old fashioned shops. The online distribution model is not necessarily a bad one but Google needs to get the device out there to be seen and wanted by more customers, not just the loyal followers of tech savvy blogs, before turning to online only means. However, is the distribution of the Nexus One inhibiting HTC’s success elsewhere? I would say not, the Hero is selling well and of course the hardware developed for the Nexus One is soon to be released in it’s non-Google form as the HTC Desire, arguably an improved device, and who benefits from that?
Ultimately it seems bizarre that a struggling company would turn down an opportunity such as this. The benefits seem to clearly outweigh the potential costs and I don’t see HTC posting €160 million losses each quarter! Sony Ericsson need a new direction but perhaps they are afraid to actually take a different route, time to stop talking Bert and actually turn this company around.
Source: sydsvenskan.se | (English translation)
Mik
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