High Style Leads Sony Ericsson to Strong Q4
By Eric Lin, Mon Jan 19 22:15:00 GMT 2004
They still have not regained a position in the Top 3 for brand sales, but Sony Ericsson have steadily improved their position as well as their bottom line since the merger.
Sony Ericsson announced their Q4 results today; it was their strongest quarter since the merger. They shipped 8 million units with sales of EUR 1.437 billion. These numbers are up significantly since Q4 of last year and also up from Q3 of this year. Sony Ericsson also continued their trend of profitability, netting EUR 43 million, even after restructuring charges.
The analysts as well as Sony Ericsson are attributing this upswing to last year's popular handsets, the t610 and p800. These handsets, especially the t610, set a new standard for elegant design as well as the most features packed usably into the least size. Nokia, Siemens and other manufacturers are following suit with new elegant designs. But Sony Ericsson believe that the t630, z600, p900 and other coming handsets will keep them in the black in the coming year.
I believe that Sony Ericsson were the first to capitalize on handsets as something stylish as opposed to trendy. The classic lines of their 2003 products is reminiscent of couture, and they even took a page or two from well known high-end designers. This air of style kept people talking about handset like the t610 despite reports of technical shortcomings. This year, other manufacturers are set to match Sony Ericsson's line in style as well as technological prowess. I believe Sony Ericsson will need to stay on the cutting edge of innovation, as well as fashion, to continue their positive trend. Many analysts believe that the introduction of high quality mass market phones like their new z200 and t230 is a critical factor to continuing success.