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Sony Ericsson to fight rivals with `secret weapon'

Hong Kong stars Ron Ng, left, and Cathy Tsui show off Sony Ericsson's latest handsets featuring 3.2 megapixel cameras at the 2006 Sony Ericsson New Product Preview in Taipei yesterday. PHOTO: CNA

To fend off competitors, Sony Ericsson Mobile Communications Ltd plans to widen its product portfolio this year, with camera phones incorporating Sony Corp's Cybershot brand name forming the centerpiece, a company executive said yesterday.

The Japanese-Swedish mobile phone maker is ranked the world's fifth-largest vendor, and occupies the No. 3 spot in Taiwan. But competition is intensifying both locally and globally as Korean vendors gear up to improve their market position.

"This year we will have a full range of products, including more low-end models and our secret weapon: camera phones under the Cybershot brand," Steven Yeh (葉順發), general manager of Sony Ericsson's local branch, told reporters yesterday.

Last year, Sony Ericsson cemented its position in the music-phone market by launching the W-series of handsets under Sony's Walkman brand, Yeh said.

The firm sold a total of 3 million Walkman phones around the world last year, he said.

Building on that experience, Sony Ericsson is scheduled to introduce its first Cybershot camera phone, the K800 model, equipped with a 3.2 megapixel camera, in Taiwan next quarter, Yeh said.

"Sony's Cybershot digital cameras have gained popularity among consumers ... With the parent company's support, we will have enhanced strength to fight for a better market position," he said.

In addition to the high-end phones, the handset maker plans to roll out more clamshell models at lower prices this year to cater to local consumers' taste, Yeh said, without providing details.

In total, Sony Ericsson has pitched about 20 models in Taiwan since the beginning of the year, compared with a total of 13 models introduced last year, Yeh said.

He declined to reveal how many models the firm plans to launch this year.

Sony Ericsson expects these efforts to increase its slice of the nation's NT$45 billion (US$1.39 billion) mobile-phone market to more than 10 percent this year, from 6.7 percent last year, Yeh said.

"We are certain that Sony Ericsson will be able to safeguard the No. 3 spot this year," Yeh said.

Rival Seoul-based Samsung Electronics Co, which tracks closely behind Sony Ericsson, said last month that it aimed to seize the No. 3 spot in the local market by boosting its marketing budget by 50 percent.

Smaller local brand BenQ Corp (明基) also set itself the target of overtaking Sony Ericsson.

Nokia Oyj and Motorola Inc, which between them hold about 50 percent of the domestic market, are in a close race for the No. 1 spot.
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