Tech

Sony Ericsson hopes for share of smartphone market

By Shen Jingting (China Daily)
Updated: 2010-09-01 13:26

BEIJING - Sony Ericsson launched the first smartphone to support China Mobile's TD-SCDMA network on Tuesday, hoping to grab a bigger share of China's promising smartphone market.

The newly launched Sony Ericsson A8i was developed in cooperation with China Mobile and runs on the operator's OMS 2.0 smartphone platform. It is expected to be one of the most entertaining smartphones in the Chinese market, in accordance with the company's focus to bring customers quality communication and entertainment.

"Our strategy is clear, aiming for high-end smartphones, both in China and in the global market," said Bert Nordberg, president and CEO of Sony Ericsson.

He pointed out that the rise of smartphones would be dramatic in the near future, and he would like to "make a bet" that more than 50 percent of Chinese mobile phone users would hold a smartphone by 2015.

However, less than 5 percent of Chinese mobile phone users currently own a smartphone, according to a survey conducted by international market research firm Informa Group.

"The reason why smartphones will get popular is because their price will become cheaper and cheaper, maybe as low as $100 per unit," he said.

"Therefore, China is a hugely important market for Sony Ericsson in terms of the potential number of buyers."

He said that Sony Ericsson is committed to maintaining its strong position and is driving growth by continually introducing new and exciting products in China.

Cooperation with China's three operators, China Mobile, China Unicom, and China Telecom, is critical for the company, according to Nordberg, as Sony Ericsson considers cooperation with operators one of its key strategies in China.

"Not only have we taken an active part in China Mobile's TD-SCDMA business, we have also been cooperating with China Unicom at the same time."

Sony Ericsson has already launched several smartphones this year based on the three major mobile phone operating systems: Android, Symbian, and Windows Mobile.

"We don't want to close the door to different operating systems, but without doubt, Google's Android is the main software we choose to develop our smartphones," Nordberg said. In the second quarter, Sony Ericsson produced more than 70 percent of the Android-based smartphones sold worldwide, making the company a frontrunner in the field.

But in the Chinese market, Motorola handsets account for more than half of China's Android-based smartphone market in the second quarter, according to a report issued by SINO Market Research Ltd.

"To be frank, I am not satisfied with Sony Ericsson's performance in China now, but I will be," said Nordberg. He said he was confident the company would beat competitors such as Motorola to win a greater market share in the country.

Ji Chendong, an analyst with research firm Frost & Sullivan, said Sony Ericsson has its own advantages in China's smartphone market, though it is a relatively late entrant.

"When it comes to Sony Ericsson, the first impression for Chinese buyers will be 'it is a good cell phone to listen to music on'. If the company combines its traditional advantages such as fun entertainment with smartphone technology, it will develop a distinctive style compared with other smartphone makers," he said.

China Daily