News
Sony Ericsson at crossroads?
Stuart O'Brien Aug 5 2008, 11:30am
Handset maker looks to heed analyst warnings to avoid becoming the 'next Motorola'.
The FT reports this morning on the steps Sony Ericsson is taking to halt its worryingly rapid fall from grace.
With company president Dick Komiyama taking solace in the fact that "there's always Christmas", analysts and the company's new corporate development head Matthew Costello are looking for more affirmative action.
The article quotes Dresdner Kleinwort analyst Janardan Menon as saying: "[Sony Ericsson] need to start experimenting with different designs. Sony Ericsson is too dependent on the Walkman and Cybershot brands. Just doing more of what you think you’re good at is the wrong strategy.”
Unfortunately companies a big as Sony Ericsson have turning circles akin to oil tankers - since unveiling its poor financials two weeks ago, the company has confirmed three new Walkman devices and a new Cyber-shot.
Nomura's Richard Windor, meanwhile, said the company's recent staff and cost cutting exercise would mean SE's ability to “address the broader market will be reduced”, with the company becoming more of a “niche player”.
Sony Ericsson's Costello remaisn positive, however, telling the FT: "We need to create positive momentum. We need to capture the next wave. Any time you announce these types of actions there is some internal noise, but realignment is the right thing to do.”
Upcoming launches for Sony Ericsson include the opening of its Play Now Arena music download store in the Nordic region and the launch of its much-anticipated X1 smartphone.
