Sony Ericsson

Nokia says Symbian acquisition is on track

Sue Marek — Wed, 26 Nov 2008 10:32:19 -0500

At a meeting in London this week Nokia executives told reporters that its acquisition of Symbian is on track and the company is preparing to turn the operating system into an open source platform that will compete with Android, LiMo and others. Nokia is hopeful that the open source Symbian platform will help it gain traction in the U.S. market and gain more market share here.

Last June, Nokia announced it would acquire the remaining shares of Symbian and would team with Sony Ericsson, Motorola and NTT DoCoMo to unite the Symbian OS, S60, UIQ and MOAP technologies and forge a single open mobile software platform.

For more:
- read this article

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Ericsson to shut down U.S. R&D facility

Jim Barthold — Tue, 25 Nov 2008 08:03:51 -0500

When the economy slumps R&D becomes a luxury, so it's really no surprise that Ericsson will close its Warrendale, Pa., R&D facility by the middle of next year. Who needs to develop new products when you can't sell the old ones?

About 250 workers will be canned--or possibly relocated--as part of the phased rollout that follows a February announcement by the telco vendor that it would slice jobs and manufacturing locations in the U.K. and Germany. The company's Sony Ericsson joint venture already gave the bad news to about 400 workers at its Raleigh Research Triangle Park facility in September.

It's not as if all these moves are sudden--badly timed, perhaps, but not sudden. Ericsson in July uttered the most evil of all corporate words, restructuring, and said it would be reducing worldwide headcount by 2,000.

For more:
- see this article

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Handset makers woo China Mobile

Jim Barthold — Thu, 20 Nov 2008 08:12:57 -0500

Handset makers Nokia, Motorola and Sony-Ericsson are talking with China Mobile about building devices to run on the carrier's "homegrown" third generation TD-CDMA networks. And if that isn't enough, the busy carrier said it was in talks with Apple to launch the iPhone in China as well.

China's billions of potential subscribers have vendors drooling over the prospects of the network rollout that will begin in the middle of 2009, even if it requires a little extra work to put the pieces of the puzzle together.

China Mobile chairman WAN Jianzhou sounds like he's one tough cookie when it comes to handsets, having reportedly said, "With TD-CDMA one headache now is that the available handsets are just not of good enough quality." Wang further said customers in network trials complained about dropped lines, which he blamed on the handsets, not the network.

For more:
- see this article

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Handset makers poised for a shakeup in 2009

Phil Goldstein — Mon, 17 Nov 2008 10:29:16 -0500

In the face of a global economic downturn and weakening demand, handset makers and vendors affiliated with cell phone components are probably headed toward a large shakeup, according to a report in the Wall Street Journal.

Some of the recent news from the sector has not been cheerful: Nokia, the world's largest handset maker, recently cut its fourth quarter and preliminary 2009 outlook; chip-maker Qualcomm cut its 2009 forecast; and Motorola just cut 3,000 jobs and is refocusing its handset division.

The article cites a Strategy Analytics forecast of shipments declining 1 percent in 2009. Companies with more high-end portfolios, including Apple, Research In Motion and HTC will be better positioned to handle any turmoil that would affect the handset market. All three have showcase devices that could help propel them through any choppy waters. In the case of RIM, there are multiple devices that could turn into large sellers, most notably the BlackBerry Storm, which Verizon Wireless is launching this week.

However, others such as Motorola and Sony Ericsson, which cut 450 jobs from its North American headquarters earlier this fall, are in a weaker position. Motorola has said it is planning on focusing more on phones running on Windows Mobile and Google's Android platform to chart it back to growth, but said an Android phone would not be in the market until the end of 2009.

For more:
- see this article (sub. req.)

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Sony Ericsson launches $800 Xperia X1

Phil Goldstein — Wed, 12 Nov 2008 12:25:51 -0500

The wait is over. The Sony Ericsson Xperia X1 is now officially available in the United States, with the phone shipping Nov. 28, or "Black Friday." The price tag: $799.99, unlocked.

The UMTS/HSDPA phone, running on Windows Mobile 6.1 and the Opera 9.5 browser will be available through authorized retailers and is available for pre-orders on the Sony Style website. The blog Boy Genius Report states that the phone will also be available in Best Buy stores beginning Dec. 7.

The phone takes advantage of a touchscreen panel user interface that lets users look at multiple applications at the same time. The phone also has a 3.2 megapixel camera, video-calling capabilities and stereo Bluetooth.

For more:
- see this Xperia slideshow and review from FierceWireless' Mike Dolan
- see this article
- see the official press release with specs

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Sony Ericsson releases newest walkman phone, the W705

Phil Goldstein — Thu, 06 Nov 2008 11:28:03 -0500

Sony Ericsson unveiled its newest walkman phone, the W705, which is equipped with HSPA and comes with a home audio system.

Users can use WiFi to download songs to the phone or use Bluetooth to stream songs wirelessly to the MBs-900 speaker system that the company unveiled along with the phone. The phone has shake control technology, which allows users to switch volume and tracks with a flick of the wrist. It also uses SensMe software that creates playlists based on a user's mood and has a 3.2 megapixel camera and a 4GB memory card.

Sony Ericsson is releasing a version of the phone for North America, the W705a, that will have access to quad-band GSM and EDGE for calls and data. The phone is expected to launch in the first quarter of 2009, but has not been attached to a carrier and no pricing is available yet.

For more:
- see this article
- see the full specs in this release
- see this picture of the W705

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Q1-Q3 handset metrics analyzed

Phil Goldstein — Fri, 31 Oct 2008 11:31:00 -0400

With the release of Motorola's third quarter results Thursday, the five major handset makers have now revealed their handset shipment numbers for the first three quarters of 2008. FierceWireless breaks down the numbers. Graphic

IDC: 3Q Cell phone shipments suffered from economy

Phil Goldstein — Thu, 30 Oct 2008 11:54:52 -0400

Research firm IDC says that global cell phone shipments fell in the third quarter in the face of worsening macroeconomic conditions. Mobile phone makers shipped 299 million handsets in third quarter, up 3.2 percent from last year and down 0.4 percent from the second quarter of this year. IDC said that historically the third quarter has been a ramp-up quarter as manufacturers load their sales channels with handsets in preparation for the fourth quarter holiday buying season. This year, that ramp up is small, which IDC says is because of the economy.

According to IDC, Nokia remained the top handset maker, with 39.4 percent market share, followed by Samsung at 17.3 percent, Sony Ericsson at 8.6 percent and Motorola at 8.5 percent market share.

For more:
- see this press release

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Sony Ericsson posts $33.6M loss, sees sales drop

Phil Goldstein — Fri, 17 Oct 2008 09:42:29 -0400

Sony Ericsson reported its third quarter results Friday and posted a net loss for the quarter of $33.6 million, compared with a $358.6 million profit from the quarter last year. The joint venture also saw its sales drop 10 percent compared to the third quarter of 2007, dropping to $3.76 billion, from $4.16 billion last time.

The company shipped 25.7 million units in the quarter, flat from the 27.9 million last time, and the average selling price declined to $146 down from the second quarter price of $156 and the third quarter last year price of $161.

The joint venture between Japan's Sony and Sweden's Ericsson has been on shaky ground recently. The company cut 450 jobs from its North American headquarters at the end of September and its second quarter profits had dropped 97 percent.

For more:
- see this article
- see this earnings release

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Sony Ericsson says, "Cheerio!" to flagship store in London

Phil Goldstein — Fri, 03 Oct 2008 11:30:34 -0400

Sony Ericsson may be in the news in North America--it recently cut 450 jobs from its North American headquarters in North Carolina--but the struggling joint venture has also recently shuttered its flagship retail store in London. Article

Sony Ericsson cuts 450 jobs in North America

Phil Goldstein — Tue, 30 Sep 2008 10:00:09 -0400

Sony Ericsson announced it would lay off 450 workers from its North American headquarters at Research Triangle Park in North Carolina, further clouding the future of the joint venture.

The company has about 750 workers at RTP, a research and development hub for Sony Ericsson, and the move is in line with the restructuring the company announced in July, when it said 2,000 employees would be laid off worldwide as the handset maker adjusted to tougher market conditions.

The joint venture has been troubled for some time, and the company's second quarter profits dropped 97 percent, which came on the heels of a profit warning in late June that predicted the drop due to weakening demand and shipping delays. The joint venture has struggled to find its footing in a fiercely competitive market, and its market share remains relatively small.

For more:
- see this article

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Sony Ericsson's future Xperia phones may not use Windows Mobile

Phil Goldstein — Tue, 16 Sep 2008 11:15:58 -0400

Sony Ericsson, in launching the X1--its smartphone that runs on Windows Mobile, said that future models are not tied to a single operating system, but declined to give details as to why. Article

T-Mobile launches its first HSDPA handset

Peggy Albright — Sun, 07 Sep 2008 17:19:06 -0400

T-Mobile USA has begun selling its first HSDPA-capable device, a Sony Ericsson TM506 flip phone. The handset became available from T-Mobile on Friday.

T-Mobile, which activated its first UMTS/HSDPA network in May of this year, had yet to offer a phone for customers wanting the faster connectivity and applications and services HSDPA provides. The new UMTS/HSDPA handset sells for $79.99 with a two-year service agreement and a $50 mail-in rebate. The company says the device comes with a 2.0 megapixel camera, access to the My Album online photo storing and sharing service, as well as stereo Bluetooth and TeleNav maps.

T-Mobile's UMTS/HSDPA network, which launched first in New York City, now reaches to a handful of markets, including Dallas, Las Vegas, and Chicago. The company plans to have services deployed in 20 to 25 markets by the end of the year. It expects its HSDPA services to offer data speeds of 600 kbps to 1 Mbps.

For more:
- Read this article

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Sony chief admits to tough times for Sony Ericsson

Sue Marek — Thu, 28 Aug 2008 09:35:07 -0400

In an interview with Germany's Welt Online magazine, Sony CEO Howard Stringer admitted it's been a difficult year for Sony Ericsson but said buying out a partner is not an easy thing to do. He added that it's important to be nimble but that being nimble isn't easy, particularly when you are confined by a joint venture. "We and Ericsson are always discussing ways of making Sony Ericsson as successful as it possibly can be," Stringer said.

However, when questioned about whether the joint venture will exist in three years, Stringer cast some doubts on the JV's future. "We have to work together again as we did two years ago or the joint venture will have to find its own solution."

For more:
- read the Welt Online interview

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T-Mobile will launch Sony Ericsson AWS phone

Sue Marek — Thu, 21 Aug 2008 10:43:50 -0400

Sony Ericsson scored an important new deal with T-Mobile USA. The carrier will launch the Sony Ericsson TM506 handset in September, the first phone from the handset maker that supports the AWS spectrum. This deal represents a big win for Sony Ericsson which has had difficulty penetrating the U.S. market. The GSM-only handset maker has secured device deals with AT&T and has offered accessories and data cards through T-Mobile USA but the last Sony Ericsson handset offered by T-Mobile was in 2004.

The TM506 is a UMTS device with a 2.0 megapixel camera and a removable memory stick. It is also outfitted GPS capability and a navigation feature from TeleNav.

For more:
- see this release
- see this photo of the TM506

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Sony Ericsson may not turnaround until 2010

Sue Marek — Tue, 19 Aug 2008 12:09:58 -0400

Analysts are painting a grim short-term outlook for Sony Ericsson. Neil Mawston, handset analyst with Strategy Analytics, says that the handset maker may see a bump in sales over Christmas, however, with mobile device sales in Europe being flat, he predicts that it will be another year or two before Sony Ericsson bounces back. The company is suffering from a poor product portfolio and minimal presence in emerging markets such as India, where millions of new phone users are added every month.

Sony Ericsson has finally starting ramping up its presence in booming markets in Asia--the company created a new division in India--but many fear it may be too late.

For more:
- see this article

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Ericsson's profit plummets 70%

Lynnette Luna — Tue, 22 Jul 2008 11:47:55 -0400

The world's largest mobile-phone infrastructure vendor Ericsson saw its second-quarter profit plummet by 70 percent because of costs associated with cutting jobs and the struggles associated with its Sony Ericsson handset joint venture, which reported a whopping 97 percent drop in second-quarter profit last week, causing the JV to cut 2,000 positions. The vendor's net income fell to $320 million from $1.07 billion a year ago. Revenue increased 2 percent to $8.1 billion in the quarter.

"The overall business activity shows stable development," said Carl-Henric Svanberg, president and CEO of Ericsson. "With no major changes in the market environment, we still find it prudent to plan for a flattish mobile infrastructure market in 2008 and our focus on adjusting our cost base remains."

Network sales fell 1 percent year-over-year as the continued decline of the U.S. dollar contributed negatively to sales, Ericsson said. Still, said the vendor, there is a steady demand for GSM equipment in high-growth markets such as Asia, which is driving the growth for network rollout services.

For more:
- see Cellular-News

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Sony Ericsson's 2Q profits sink, 2,000 workers cut

Sue Marek — Fri, 18 Jul 2008 11:35:34 -0400

Handset maker Sony Ericsson's second-quarter profits dropped a dramatic 97 percent causing the company to cut its workforce by 2,000 people. Second quarter profits were $9.5 million, down from $348.6 million in second-quarter 2007. In addition, net sales fell 9.4 percent to $4.46 billion down from $4.92 billion.

Sony Ericsson shipped 24.4 million phones in the quarter, down 2 percent from second-quarter 2007. The average selling price of its handsets was $183.72 down from $191.64. in the year-earlier quarter.

The news didn't come as a huge shock to investors because the company issued a warning in late June that slowing demand and shipping delays would hurt its second-quarter earnings. Sony Ericsson President Dick Komiyama said during a conference call on the earnings that the company is taking steps to become "a faster, more agile and more cost-efficient organization." That includes reducing its workforce by 2,000 people, which will save the company about $475 million.

For more:
- see this article

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Sony Ericsson may acquire Spice

Sue Marek — Mon, 14 Jul 2008 11:06:13 -0400

According to the Economic Times, Sony Ericsson is considering acquiring Spice, the handset division of BK Modi Group. BK Modi owns 64 percent of Spice and has asked for 80-100 rupees per share, which would value the company at up to $174 million. The deal has not been finalized, however should it come to fruition, it would make Sony Ericsson the second largest handset maker in India.

Sony Ericsson is well known for its Walkman-branded phones and in first quarter 2008 it shipped 22.3 million handsets, a 2 percent increase year over year. However, in June the company issued a warning to investors that its second-quarter sales and net income will take a hit because of slowing demand for its mobile phones and new product shipping delays. The handset maker estimated it would just break even in the second quarter.

For more:
- see this article

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Sony Ericsson the new Motorola? Ouch!

Sue Marek — Tue, 01 Jul 2008 11:45:17 -0400

Sony Ericsson's recent profit warning is causing alarm among investors and creating doubts among industry pundits. But now some are even comparing the company to ailing Motorola, saying that Sony Ericsson relied too heavily upon the success of its Walkman phones and failed to innovate with low-end devices that appeal to a broader market. Article