Sony Ericsson bets big on new handset range

Sony Ericsson bets big on new handset range
Sony Ericsson UK boss speaks ahead of Q2 2010 financial results of marketing push behind Arc handset, and confidence the firm’s subsequent devices will see it reclaim share

Sony Ericsson will launch its biggest ever marketing campaign in the UK in March to promote its Xperia Arc handset, claiming at the same time its new products this year will “propel it back to where it needs to be”.

The company said its new marketing will be bigger than the ‘Spark Something’ campaign, that attended the UK launch of its Satio and Aino handsets in October 2009 and formed part of Sony’s £8 million campaign to unite all divisions under the ‘make.believe’ slogan.

The Arc (pictured) is the fifth Android-based Xperia phone from the company, following the X10, X10 mini, X10 mini pro and X8 last year.

It comes with an arched body and measures 8.7mm at its thinnest point. It runs Android 2.3 and features a 4.2-inch touchscreen, 1GHz processor, 8.1-megapixel camera and HD video recording.

Sony’s Mobile BRAVIA Engine is featured, which the firm said improves the image quality, as well as Sony’s Exmor R sensor which it said improves photo and video capture in low light.

The Arc comes with on-board memory of 512MB and has support of up to 32GB. A 32GB card will come bundled with the phone as well as an HDMI cable. It will be available in black and silver from all major retailers, free on £35-£40 tariffs.

UK and Ireland managing director Nathan Vautier said: “Xperia Arc is our flagship device from three key aspects – innovation, quality and design. People look at us as a brand to bring those things to market. We’re doing that and we’ll be shouting from the rooftops when we release Arc.”

Vautier said Sony Ericsson is gaining an advantage by working more closely with Sony and taking on its technologies.

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Sony Ericsson turns profit with Android focus and cost cutting

Sony Ericsson turns profit with Android focus and cost cutting
Sony Ericsson returns to profitability in 2010 with Android smart phone focus, at expense of 4,000 jobs and certain production facilities, but sales and market share slip
Sony Ericsson posted profitability for 2010, and profitability in each consecutive quarter, a consequence of its aggressive staff cut backs, reduced production costs, slimmer portfolio and focus on Google’s Android system.

Its total handset shipments reduced 23 per cent in the year, from 57.1 million in 2009 to 43.1 million in 2010. Market share dropped with it.

It said it had shipped over nine million Android-based Xperia handsets globally since launch.
Sales revenue dropped also, from 6,788 million to 6,294 million.

But its average selling price, gross margin and profitability jumped on the back of its restructuring and focus on higher-end Android smart phones.

The company has axed 4,000 jobs axed across its business alongside several production facilities.

Its Android handsets garnered an average trade price of €146 in the period, compared with €119 for its 2009 range.

Operating expenses were reduced by over €880 million, it said, at a cost €381 million.

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