Sony Ericsson and their new concepts
Walkman, a fantastic brand in the current mobile market, has become a succes now Cyber-shot is next. But what can we expect more?
Previous years were survival for Sony Ericsson. After the aggregation of the mobile components of Ericsson and Sony the start has been used for the rise from the depth. The new Swedish-Japanese company stood for the task to build-up a portofolio that could carry the honour and name of both and would become a strong brand in the market.
The first couple of years contained a loss of millions of euros, but it was improved throughout the years to a number in the plus. At present the increase is placed at the position where it belongs, althought currently it is not as large as two years ago. At that time the increase was invoked by models such as the Sony Ericsson T610 and K700i.
The question is now was the K750i the success what it should have been; Partly and partly not. The device did not have the looks which models like the Nokia 6230 and Samsung D500, D600 and E530 do have. Customers in europe don't look directly at specifications, but look at external looks and feeling. The frequently heard bling bling factor is the first step to buy a phone, not a fantastic 2.0 megapixel camera. The user does not see the differences between the quality of the different photocameras and descends on what the salesman in the shop shows him/her. The average user - where the sale volumes are gained- is satisfied with what the D600 (also equipped with a 2.0 megapixel camera) offers.
Which model has then signed for those smaller boost in 2005? Besides the K750i it was the W800i, which started the Walkman concept and made the way free for high quality audio, easy ripping of CDs and storagecapabilities in a mobile phone that is enough for many people. This device ensured the offer where the market for asking for and got a package with everything the K750i already had.
Weak points of Sony Ericsson last year? Especially in the low and business segment. Moderate devices, lack of new devices and external looks that addressed not to everyone were especially points which took part in this.
That needs to be taken up this year and will lead to an introduction of approximately 23 new devices this year. Of those 23, 11 new models have already been shown in the past two months, among those the successor of W800i, the W810i and the ultimate musicsmartphone, W950i. The expectation is that large introductions will not follow in the upcoming months. The current portofolio will fill up the coming half year.
"Will this be successful?" is something natural that each Sony Ericsson employee will ask himself and it will be the major issue the upcoming months. Because by looking at the new introductions which have been shown in the previous months it will become clear that they have achieved progress on some points. But there has also been not enough progress on certain other points.
A good example of this is the new range of business models (M600i and P990i) that will have to compete against the new brilliant E-series and the flood of HTC alternatives which will be offered for sharp prices at several providers. SE will not manage to get real market share in our eyes on this area. Components such as the price and the lack of support for Voice over IP and a strong marketing and strategy in the business market are missing factors. Both models will do well in the nichemarket.
Also the absence of a strong successor for the V800i and Z800i will be be felt not directly, but is a point of criticism and remains an enormous breach in the portofolio the coming half year.
What is also notable within the introductions is the way in which Sony Ericsson stops with the binovularly concept strategy. This concept ensured the boost in the sales of the W800i last year. The device was based on the K750i and could as a result create large volumes. They brought a superior cameraquality of the K750i and the Walkman concept together which led to a successful combination.
The change in which several concepts are chosen taken from Sony is now going on. Several devices will be strong on a certain concept. The best example of this is the new K790i/K800i, the succesor of the K750i that contains the support for UMTS or EDGE and has the concept of Cyber-shot onboard. This new segment will act next to the Walkman segment and is focussed at the camera in the device. All options and possibilities that the new 3.2 megapixel camera will offer are coordinated, besides one thing.
The videocamera has not improved and it seems that this opens the way for a third line with new devices called Handycam. From a reliable source it has become clear that the first model is in preparation and will be introduced before the end of this year. The very first slider and Handycam from Sony Ericsson will be equipped with 3.2 the megapixel camera (no confirmation on that) and will have an enormous improvement in the field of video possibilities. Concepts as steadyshot and HDV are currently used already by Sony in their current camcorder portofolio and would certaintly be nice on a model completely fixed on video. Other concepts are possible for example a game device on the basis of a vertical integration of the PlayStation or PSP brand.
One thing is certain Sony Ericsson segments the portofolio by introducing the concept Cyber-shot on the market, besides mail/messaging and Walkman. "The correct choice?" in our eyes partial. New concepts are never bad, but in the field of specifications one clear line must be set which goes through the certain concepts. The portofolio at present does not show that. The differences between K800i and W810i are too large. The average user will buy his K800i as a mobile phone with good cameraquality and a new iPod as MP3 player for its music. Not a new Walkman device!
Preserving users and building brandawareness are points which have been put high on the agenda by Sony Ericsson. By showing the new concepts they will certainly draw new users, but by the segmentation and absence of a clear line with regard to specifications in the current portofolio it will become difficult to preserve current customers.
Shall we not see an increase in sales this coming year? Yes, but not an increase which was reached two years ago with designs like the T610 and K700i and the line in specifications between the K750i and W800i. No, the increase will be achieved in the increase of the portofolio, next to individual succeses.
