Sony Ericsson to manufacture low-cost phones in India

Sony Ericsson plans to start making low-cost color screen and music playing handsets made in India through manufacturing agreements with Flextronics and Foxconn, a Reuters report said.

The Reuters report also quoted a Sony Ericsson statement, as saying that production in the fast growing Indian mobile phone market will reach 10 million mobile phones by 2009.

Production of 10 million phones would represent around 13% of all Sony Ericsson phones sold in 2006, the Reuters report said.

'In addition to competitive pricing, these phones will offer customized features for the Indian market, such as local content and customized keypads,' Sony Ericsson said in the statement.

The world's fourth biggest mobile phone maker, measured in units, has made its mark with premium phones including Cybershot digital cameras and Walkman music players, the report said.

Analysts have said it now needs to bring out more low-cost phones, catering to lower income customers in the fast growing emerging markets, to reach its target of becoming the world's number three mobile phone maker, according to the Reuters report.

Sony Ericsson had a fourth-quarter global market share of 8.7%, behind Nokia's 35.2%, Motorola's 21.9% and Samsung's 10.7%, the report added.

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