For the third quarter in a row, Sony Ericsson has posted a profit $69 million on a $2.26 billion income. Though that might not be a high profit level compared to other handset makers like HTC and Nokia, this is a big turn around for a company who was losing money quarter after quarter. During this time, Sony has released the Xperia X10 and Xperia X8 and shifted their strategy to smartphones with Android. Even though the numbers shipped from Sony have dipped, compared to prior quarters, Chief Executive Bert Nordberg thinks that the company is on the right track.
“Our strategy to focus on the smartphone segment is succeeding and smartphones now comprise more than 50% of our total sales. During the quarter, we launched our Android-based Xperia models in new markets, such as China and the U.S.”
Still, this isn’t all that bad for Sony. Remember, Apple only makes one or two iPhones, depending on how you look at it (the iPhone 4 and 3GS) and they rake in the cash. Of course, Sony and Apple are not in the same position so it’s a very rough comparison, but the point is that Sony does not need to make 20 different handsets like before to be profitable. Instead, Sony needs to steadily increase their presence in the Android community with newer phones and target all different consumers. That means making both lower end $100 handsets, as well as the $300 handsets. Another must for Sony Ericsson will be to amp up their brand awareness. Although still known in Europe and Japan, Sony Ericsson has all but no name. Till now, their strategy had mostly been to sell unlocked phones through their website and select retail stores that come at a much higher price point. But in today’s world where an iPhone 3GS starts at $99 with a two year contract, a $500 unlocked phone is not an attractive offer. Instead, Sony needs to continue to partner with carriers and offer subsidized pricing on its phones to draw in the consumer. A commercial once in a blue moon wouldn’t hurt either. Also Sony, please stop shipping smartphones with Android 1.6. That OS is over a year old.
[Via Sony Ericsson]