HTC

HTC only wants to make high-end phones, should be worrying for Sony

HTC10

Sony doesn’t often get credit for for their strategic vision as they more often than not skate to where the puck is, with a delay, rather than to where the puck is going to be. With smartphones this was no different but with their mobile division in disarray, the company did something many pundits thought to be suicide – they exited the entry market and instead focused on high-end devices like the Xperia Z5, Xperia X, and now Xperia XZ. The results? A division that was once reporting over a billion dollars in losses is now recording profits.

Now mind you there is a lot Sony could be doing to better the situation for themselves but their initial vision was correct – to put aside the volume driven mentality that drove the PC business and many Android makers into the ground and instead focus on profitability. Now another Android maker is looking to take a cue from Sony and drop their entry level phones with a focus on high-end devices.

HTC could soon exit the phone business

htc_hq_building

I’ve written many times about how HTC is the bellwether for Sony and other Android OEMs that aren’t Samsung or from China. Now, according to the latest rumors as pointed out by Digital Trends, HTC could be making an exit from the smartphone business in 2017.

 HTC’s mobile business has been struggling for some time, despite the fact that we are big fans of its most recent flagship device. That struggle may soon come to an end, though, as there are rumors swirling that it will leave the smartphone business entirely as soon as spring 2017. 

HTC 10 Discontinued in 2 Months by T-Mobile

HTC10

HTC and Sony Mobile are two companies that, despite being from different countries, have a lot in common. Like Sony, HTC has dabbled with Windows phones in the past though they rely heavily on Android. Like HTC, Sony once held a much greater market share in the US than they do now. And both companies once saw mobile as a driver of growth, only to be crushed by market realities and their competitors.

Despite their similarities, HTC has enjoyed a lot of success that Sony has only dreamed of. For one, they used to be a darling of the Android community and were able to use their early growth to mount a successful marketing campaign around their products. Samsung may have always been the market leader for Android phones but HTC was able to carve itself a meaningful market for themselves with their powerful phones that attracted enthusiasts. Seeing how the Taiwanese company couldn’t exactly go to toe-to-toe with Samsung and its strong carrier support from Verizon and AT&T, HTC was able to do the next best thing and woo in T-Mobile, known as the Un-carrier network – again, something that Sony has attempted to do in the past.

Another Reason Why PlayStation VR Will Outpace Oculus Rift & HTC Vive

Let’s see, a far lower entry price and a 40 million install base? As it stands, there is no way Oculus Rift and HTC Vive are going to compete with PlayStation VR when it launches this October. All Sony has to do is keep the momentum going and fully empower their developers to produce some unique games and experiences. After all, content is king and the true selling point of VR.

GameStop to Heavily Push PlayStation VR Over Oculus Rift & HTC Vive

Sony is wisely releasing PlayStation VR this October, just in time for the busy holiday shopping season. While launching a few months after Oculus Rift and HTC Vive, the extra time will ensure that PS VR won’t see the same type of manufacturing delays that has plagued Oculus while giving developers a few more months to polish their games. With more time to plan, Sony has been busy putting together strategic partners that will also help push PS VR and educate consumers, one of the biggest hurdles that face all VR companies. GameStop CEO Paul Raines:

 We’ve played all the VR that’s come through our office, and the setup time for PlayStation VR is significantly easier and the space required to demo is small, so I expect we’ll have a lot of demos in stores, unlike the Oculus or HTC. 

One of the key advantages that Sony has with PlayStation VR is how the unit is sold. Have a PS4 already? Then all you need is PS VR standalone package or the bundle which is pictured below. Starting from scratch? That’s also not a problem – here is a PS4 and PS VR bundle. This is direct contrast to Rift and Vive which require a PC. How does GameStop determine the PC you have at home is good enough to run VR beyond giving you the minimum specs required?

Even if the shopper happens to know their PC’s exact specs, a number of external factors can dramatically change how either VR headset performs once at home. And if they don’t have a PC or capable PC at home, does GameStop now get into the PC selling business? On the other hand, Sony makes it simple. You just need a PS4. John Koller, vice president of marketing at Sony Interactive Entertainment:

 We want to create a large footprint in high-visibility stores to have front-window demo experiences 

And it looks like they’re going to get that in a major way from GameStop. Here is their COO Tony Bartel:

 We’re clearly going to be the key launch partner. We’ll be selling Sony PlayStation VR hardware, bundles, and games in stores. 

For Sony, their first year target is PlayStation’s most hardcore users. According to Koller:

 They’re active, buying a lot of games and really enjoy PS4. That’s going to be the early active PlayStation VR consumer. 

From there, experience and word of mouth is going to be the key driver of PlayStation VR – or its demise. Unlike a new PlayStation, which is easy to explain (generally it’s more powerful with better visuals), VR is an entirely new medium that needs to be experienced. Once again, Koller:

 Trial drives the conversion to purchase. You have to be able to go into a GameStop to try this. We’ll have a fantastic technology, but you need to get your hands on it. 

And VR is expected to do big business. More on that after the jump.

Sony Mobile Passes HTC, Lands 2nd in UK Android Sales

Sony MobileA big part of the slow turn around story for Sony is hinged upon the success of Sony Mobile, the division responsible for smartphones, tablets, and VAIO computers. Thanks to increased sales of their Xperia smartphones, Sony was able to raise their revenue to $3.9 billion, more than double of their previous quarter. This resulting in Sony posting a much lower loss of $198 million last quarter. With an increased focus on mobile and the fall of HTC and LG in smartphones, Sony Mobile was elevated to the number 3 in global smartphone sales with Samsung and Apple definitively leading the number one and two spot.

Now, Sony Mobile has passed another milestone. Beating our rival Android smartphone maker HTC in UK has propelled Sony Mobile to become the number 2 Android smartphone in the country. Mobile Today reports that in Q3 of 2012, Sony was able to move 500,000 Android smartphones while HTC shipped 440,000 in the UK. While both numbers combined still pale in comparison to Samsung who shipped 3.2 million, it’s still a healthy sign for Sony Mobile.

Many, including Sony itself, credit the rise to the promotional boost their device received with the release of Skyfall, the latest James Bond film. The Sony Picture film helped create some cross promotional advertisement for their sister division and even saw to it that James Bond used a Sony Ericsson Mobile phone. What UK MD of Sony Mobile, Pierre Perron had to say, after the jump.

Sony Climbs to Number 3 in Global Smartphone Market

Sony Xperia SIt’s a case of good news/bad news for Sony Mobile, the division responsible for the companies line of Android smartphones. According to the latest IDC report, Sony Mobile climbed to the number 3 spot in the global smartphone market in the third quarter, behind Samsung and Apple. This is quite the accomplishment since Sony was in the number 6 spot just a year ago. That right there is the good news, especially if you take into consideration the division’s ability to raise revenue to $3.9 billion.

The bad news if it can be called that, is how Sony was able to climb three spots in such a competitive marketplace. No — Sony hasn’t been able to sell droves of smartphones with some new and cohesive marketing campaign. Instead, the rise is mostly thanks to the dramatic fall of Nokia (now exclusively making Windows 8 phones), HTC, and RIM. In fact, Sony’s overall market share has fallen by 0.2%, down to 4.8%, compared to a year ago. The once-dominant Nokia, however has taken the biggest stumble to 3.4% from 13.6% a year earlier. HTC is also dramatically down to 4.7% from 10.3% while RIM’s share fell to 4.2% from 9.6%.

Sony Ericsson to Be No More in Mid-2012, Currently Holds 19% of Android Market Share

The days are now numbered for the once partnership that begin between Sony and Ericsson 10 years ago. The two companies are in midst of filling the final paper work that would end the 50/50 partnership. Though in the early days, the partnership was hailed between the two companies, thanks to Apple and the advent of the smartphone rise, Sony Ericsson began to fall behind and unable to compete with Apple and other Android makers like Samsung and HTC. Kristian Tear, executive VP & head of sales & marketing of Sony Ericsson,

 “A lot of planning goes into getting the branding right but we will be done by middle of next year. It will also mean that the marketing and advertising investments will go up. We haven’t been as fierce as we were a few years back but we will step it up, refocus and invest more in brand-building in select markets and India is one of those markets” 

Sony is hoping that by bringing all smartphone operations in house and under one roof, the company will be better able to leverage it’s many assets, including their technological strength that has the company building industry leading televisions with the Bravia line and their powerful gaming machine, the PlayStation 3. Sony of course has their hands in the entertainment industry as well with Sony Pictures and Sony/BMG (music).

 “Sony is the world’s biggest entertainment company. We were earlier a 50-50 JV, but now that we are a wholly-owned subsidiary of Sony Corp. We expect to gain from its assets on the content , technology and brand side,” 

When looking at the larger smartphone market, Sony Ericsson currently only holds 2% of the market thought that number raises to 19% if we consider only Android smartphones. Sony hopes that by bringing in their media and consumer electronic background to the smartphone race, they can create some unique Android smartphones and rise to the top of the Android totem pole, something that they’ve been striving for during the past few years. The company has had some unfortunate setbacks though, mostly out of their hands.

 “Last eight quarters have been good for us and we are proud of that. We went from focusing only on volumes to value but the big setback was what happened in Japan with the Tsunami, which put us back for this year quite a bit. But we are going in the right direction,” 

With a large fragmentation happening in the Android market and little that differentiates one device from another, Sony has a unique opportunity to pull together all of their assets and offer would be Android buyers and switchers a different take and ecosystem, something that Apple has been able to do.

Sony Ericsson Contain No Carrier IQ on Xperia Smartphones

By now, you’ve probably heard about the Carrier IQ controversy which has dragged companies like Apple, RIM, HTC,  and Nokia through the mud. Carrier IQ is a company who offers their technology services on various devices, including iOS, Android and Windows smartphones. The company specifically provides a software called “IQRD” with intelligence solutions to the wireless industry” which logs user data. However, without permission from carriers or hardware makers, Carrier IQ is being accused of logging Web searches and every single button that is being tapped. iOS users are the least hurt by this as only phone call and location was being logged, in which case users could have also cut off all access to the software by by simply going to Settings -> General -> About -> Diagnostics & Usage -> Don’t Send.

However, the real winner or most protected device in all this is the Xperia smartphones by Sony Ericsson. In an official press release by Sony Ericsson, the company has revealed that they do not install or support Carrier IQ on their Xperia lineup of Android smartphones. Full press release and your comments, after the break.

On the Eve of iPhone 4S, Sony Ericsson CEO Reflects


Did you know that once upon a time, Sony Ericsson was one of the top smartphone makers in the world? Things were much simpler pre 2007, specifically, pre iPhone. At that time, Sony Ericsson made a slew of custom UI smartphone and models that ran on Palm and Windows Mobile variations. Sure Blackberry was still king back then but only in the corporate world. Others and more importantly, the everyday public which was a large and untapped market, didn’t want bulky phones with Exchange and spreadsheets. Things were indeed good in those days where a products spec sheets still ruled the world and  determined how a buyer would know if a product was worthy. With a name like Sony which has enjoyed a long heritage of quality products on the box, it was hard not for the joint venture between the two companies to be on top of the sales charts.

Now, the world is different. Sony Ericsson is no longer on top of the sales charts and has a hard time even cracking the top 5. So how does current CEO, Bert Nordberg see all this? We should also point out that Mr. Nordberg was not the CEO of Sony Ericsson, during the times mentioned. For one, he is happy with picking Android as the OS to use in their smartphone category and while others like HTC, LG and Samsung have also backed Windows Phone.

 “At this point I wouldn’t feel comfortable investing in a platform that isn’t as good as the one that we currently use,” he said. “Therefore we have remained with Android, but I am quite curious about Windows Phone.” 

Only in the last year alone and under Nordberg’s eyes, we’ve seen a plethora of Android powered phones from Sony Ericsson. Their current lineup includes though not limited: Xperia arc, arc S, neo V, Live with Walkman, mini, mini pro, Active and PLAY (for those playing at home, Sony does indeed use funky capital and none capital letters throughout their lineup). With nearly 15 Android powered phones in their current portfolio, Sony Ericsson has shifted a majority of their business practices from the traditional “dump phone” to the more lucrative and ever growing smartphone centric market. With so many phones at their disposal, it’s hard to imagine why Sony has yet to see real success from their shift to Android until you realize their lack of focus on the US.

Sony Ericsson has long been a power house in Asia and Europe. To this day, the majority of their sales comes from the international market and not the United States. Much like Nokia, Sony was slow to see the US as a growing and maturing market. With the launch of the iPhone, the entire mobile landscape would change. Traditionally exclusive to AT&T, the iPhone changed how people viewed smartphones. The demograph which was once only the business men in suits would soon change to teens, coaches and moms and dads.  The iPhone would change the trajectory of the mobile landscape, leaving those who were slow to the realization of the new market and profits behind it to fall victim to loss of market share and profits.

  Nordberg said, “it’s safe to say that Sony Ericsson should have taken the iPhone more seriously when it arrived in 2007.” 

Taking the iPhone seriously however was only part of the problem. Sony, like every other manufacture relies heavily on OS makers to provide them with the software needed to power their phones. In the first two years of the iPhone, Google and their Android software were still in incubation while others can argue that Microsoft is still there. With no other software makers in the market, it’s hard to imagine thing’s being different had Sony taken Apple and iPhone seriously. However, in the last two years where other manufactures like Samsung, Motorola and HTC have taken advantage of the free OS provided by the folks in Mountain View, Sony has stumbled and continued to lose market share. This ties directly to Nokia’s problem as well which failed to see the US as a strong player. While both companies continued to sell their phones through channels like select retail stores and online domains, other handset manufactures were quick to cut deals with US providers like Verizon and AT&T. These partnerships would result on advertisement for their handset and dramatically reduced prices on the phones while Sony Ericsson had no marketing in place and full priced phones which were all between the $450-800 range.

Nordberg is hopeful that the current promotions on the Sony Ericsson Xperia PLAY will win over consumers as the company under his leadership begins to create more partnerships and promotions with US carriers.

Discuss:

How do you see Sony Ericsson in the mobile landscape? Are their offerings exciting while they lack the proper promotions and partnerships or is the problem somewhere else?