Sony Mobile

For an arrangement of Sony Ericsson products, see list of Sony Ericsson products.

Sony Ericsson Mobile Communications AB

SonyEricsson
Company type	Joint venture
Industry	Telecommunications
Founded	October 1, 2001
Headquarters	Hammersmith, London, United Kingdom
Area served	Worldwide
Key people	Sir Howard Stringer (Chairman) Bert Nordberg (President) Rikko Sakaguchi (EVP) Kristian Tear (EVP) William A Glaser Jr (CFO)
Products	Mobile phones Mobile music devices Wireless systems Wireless voice devices Hi-Tech accessories Wireless data devices
Revenue	€6.294 billion (2010)
Operating income	€147 million (2010)
Net income	€90 million (2010)
Number of employees	8,450 (as of April 2010)
Parent	Sony Corporation (50%) Ericsson AB (50%)
Website	SonyEricsson.com

Sony Ericsson Mobile Communications AB is a joint venture established on October 1, 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to manufacture mobile phones. The stated reason for this venture is to combine Sony's consumer electronics expertise with Ericsson's technological knowledge in the communications sector. Both companies have stopped making their own mobile phones.

The company's global management is based in Hammersmith in London, United Kingdom, and it has research & development teams in Lund, Sweden; Tokyo, Japan; Mexico City, Mexico; Beijing, China and Redwood Shores, United States. By 2009, it was the fourth-largest mobile phone manufacturer in the world after Nokia, Samsung and LG. The sales of products largely increased due to the launch of the adaptation of Sony's popular Walkman and Cyber-shot series. In 2010, its market share had dropped to sixth place behind Research In Motion and Apple.

Recent performance

Sony Ericsson has been enjoying strong growth recently, its South Korean rival LG Electronics overtook it in Q1 2008 due to the company's profits falling significantly by 43% to €133 million (approx. US$ 179.6697 million), sales falling by 8% and market share dropping from 9.4% to 7.9%, despite favourable conditions that the handset market was expected to grow by 10% in 2008. Sony Ericsson announced another profit warning in June 2008 and saw net profit crash by 97% in Q2 2008, announcing that it would cut 2,000 jobs, leading to wide fear that Sony Ericsson is on the verge of decline along with its struggling rival, Motorola. In Q3 the profits were much on the same level, however November and December saw increased profits along with new models being released such as the C905 being one of the top sellers across the United Kingdom.

Sony Ericsson has, as of July 18, 2008, approximately 9,400 employees and 2,500 contractors worldwide. Bert Nordberg is the president of the company since October, 2009. Sir Howard Stringer, CEO and President, Sony Corporation, is chairman of the board.

History

Troubles in Ericsson's mobile phone business

In the United States, Ericsson partnered with General Electric in the early nineties, primarily to establish a US presence and brand recognition.

Ericsson had decided to obtain chips for its phones from a single source—a Philips facility in New Mexico. In March 2000, a fire at the Philips factory contaminated the sterile facility. Philips assured Ericsson and Nokia (their other major customer) that production would be delayed for no more than a week. When it became clear that production would actually be compromised for months, Ericsson was faced with a serious shortage. Nokia had already begun to obtain parts from alternative sources, but Ericsson's position was much worse as production of current models and the launch of new ones was held up.

Ericsson, which had been in the cellular phone market for decades, and was the world's no. 3 cellular telephone handset maker, was struggling with huge losses. This was mainly due to this fire and its inability to produce cheaper phones like Nokia. To curtail the losses, it considered outsourcing production to Asian companies that could produce the handsets for lower costs.

Speculation began about a possible sale by Ericsson of its mobile phone division, but the company's president said they had no plans to do so. "Mobile phones are really a core business for Ericsson. We wouldn't be as successful (in networks) if we didn't have phones", he said.

Background of the joint venture

Sony was a marginal player in the worldwide cell phone market with a share of less than 1 percent in 2000.

By August 2001, the two companies had finalized the terms of the merger announced in April. The company was to have an initial workforce of 3,500 employees.

Ericsson's market share actually fell and in August 2002, Ericsson said it would stop making mobile phones and end its partnership with Sony if the business continued to disappoint. However, in January 2003, both companies said they would inject more money into the joint venture in a bid to stem the losses.

Sony Ericsson's strategy was to release new models capable of digital photography as well as other multimedia capabilities such as downloading and viewing video clips and personal information management capabilities. To this end, it released several new models which had built-in digital camera and color screen which were novelties at that time. The joint venture, however, continued to make bigger losses in spite of booming sales. The target date for making a profit from its first year to 2002 was postponed to 2003 to second half of 2003. It failed in its mission of becoming the top seller of multimedia handsets and was in fifth-place and struggling in 2005.

Turnaround

Annual net income or loss 2003 to 2009

Beginning of the turnaround

In June 2002, Sony Ericsson announced it would stop making Code division multiple access (CDMA) cellphones for the US market and would focus on GSM as the dominant technology. It also cut jobs in research and development in the USA and in Germany. In October 2003, it posted its first quarterly profit but warned that falling prices on phones and competition would make it difficult to stay in the black. Sony Ericsson's recovery is credited to the success of the T610 model. Although Sony Ericsson no longer makes CDMA cellphones for the global market, they still manufacture CDMA cellphones for Japanese market, mainly for au by KDDI. In 2011, they launched Xperia PLAY with CDMA network for Verizon Wireless in US.

Following the success of its P800 phone, Sony Ericsson introduced the P900 at simultaneous events in Las Vegas and Beijing in October 2003. It was pegged as smaller, faster, simpler and more flexible than its predecessor.

In March 2004, Ericsson said it would try to block its rival Nokia from gaining control of Symbian, an industry consortium that made operating software for smart phones.

In 2004, Sony Ericsson's market share increased from 5.6 percent in the first quarter to 7 percent in the second quarter . In July 2004, Sony Ericsson unveiled the P910 communicator with its integrated thumbboard, broad e-mail support, quadruple memory and improved screen.

In February 2005, Sony Ericsson president Miles Flint announced at the 3GSM World Congress that Sony Ericsson would unveil a mobile phone/digital music player in the next month. It would be called the Walkman phone and would play music file formats such as MP3 and AAC.

Success with Walkman and Cyber-shot phones

On March 1, 2005, Sony Ericsson introduced the K750i with a 2 megapixel camera, as well as its platform mate, the W800i, the first of the Walkman phones capable of 30 hours of music playback, and two low-end phones.

In 2007 their first 5-Megapixel camera phone, the Sony Ericsson K850i, was announced followed in 2008 by the Sony Ericsson C905, the world's first 8-Megapixel phone. At Mobile World Congress 2009, Sony Ericsson unveiled the first 12-Megapixel phone, named Satio, on May 28, 2009.

Beyond

On May 1, 2005, Sony Ericsson agreed to become the global title sponsor for the WTA Tour in a deal worth 88 million US dollars over 6 years. The women's pro tennis circuit was renamed the Sony Ericsson WTA Tour. Just over a month later on June 7, it announced sponsorship of West Indian batsmen Chris Gayle and Ramnaresh Sarwan.

In October 2005, Sony Ericsson presented the first mobile phone based on UIQ 3, the P990.

On January 2, 2007, Sony Ericsson announced in Stockholm that it will be having some of its mobile phones produced in India. It announced that its two outsourcing partners, FLextronics and Foxconn will be producing 10 million cellphones per year by 2009. CEO Miles Flint announced at a press conference held with India's communications minister Dayanidhi Maran in Chennai that India was one of the fastest growing markets in the world and a priority market for Sony Ericsson with 105 million users of GSM mobile telephones.

On February 2, 2007, Sony Ericsson acquired UIQ Technology, a Swedish software company from Symbian Ltd.. UIQ will remain an independent company, Miles Flint announced.

On October 15, 2007, Sony Ericsson announced on Symbian Smartphone Show that they will be selling half of its UIQ share to Motorola thus making UIQ technology owned by two large mobile phone companies.

Cost-cutting program and job losses

In June 2008, Sony Ericsson had about 12,000 employees, it then launched a cost-cutting program and by the end of 2009 it had slashed its global workforce by around 5,000 people. It planned to cut another 1,500 jobs in 2010. It has also closed R&D (research and development) centres globally, such as, Chadwick House, Birchwood (Warrington) in the UK; Miami, Seattle, San Diego and RTP (Raleigh, NC) in the USA; The Chennai Unit (Tamil Nadu) in India; Hässleholm and Kista in Sweden and operations in the Netherlands. The UIQ centres in London and Budapest were also closed, UIQ was a joint venture with Motorola which began life in the 1990s.

Types of phones

Main areas of interest

Sony Ericsson currently concentrates on the categories of: music, camera, business (web and email), design, all-rounder, eco-friendly, and budget focused phones. Its six largest categories are:

• The Walkman-branded W series music phones, launched in 2005.
  The Sony Ericsson W-series music phones are notable for being the first music-centric series mobile phones, prompting a whole new market for portable music that was developing at the time. The main feature that can be seen in all of these Walkman phones is they all have a 'W' button which once pressed opens the media center. Sony Ericsson's Walkman phones have previously been commercially endorsed by pop stars Christina Aguilera and Jason Kay across Europe. Walkman branded phones are also produced for the Japanese market.
• The Cyber-shot-branded line of phones, launched in 2006 in newer models of the K series phones.
  This range of phones are focused on the quality of the camera included with the phone. Cyber-shot phones always include a flash, some with a xenon flash, and also include auto-focus cameras. Sony Ericsson kicked off its global marketing campaign for Cyber-shot phone with the launch of 'Never Miss a Shot'. The campaign featured top female tennis players Ana Ivanović and Daniela Hantuchová. On February 10, 2008, the series has been expanded with the announcement of C702, C902 and C905 phones. Cyber-shot branded phones are also produced for the Japanese market.
• The BRAVIA-branded line of phones, launched 2007 in the Japanese market only.
  Until now, five BRAVIA branded phones have been produced. Sony Ericsson (FOMA SO903iTV, FOMA SO906i, U1, S004, and S005) uses the BRAVIA brand. BRAVIA branded phone are able to show 1seg terrestrial television.
• The UIQ smartphone range of mobiles, introduced with the P series in 2003 with the introduction of P800.
  They are notable for their touchscreens, QWERTY keypads (on most models), and use of the UIQ interface platform for Symbian OS. This range has since expanded into the M series and G series phones.
• The XPERIA range of mobile phones, heralded by the Sony Ericsson XPERIA X1 in February 2008 at the Mobile World Congress (formerly 3GSM) held in Barcelona Spain, was the first trademark promoted by the Sony Ericsson as its own and is designated to provide technological convergence among its target user base. The first model, X1, carried the Windows Mobile operating system with a Sony Ericsson's panel interface. The Xperia X10 model features the Android operating system. Additionally, Yahoo! News reported that Sony would align with Google to run Android on its upcoming smartphone.
• The GreenHeart range of mobile phones, first introduced in 2009, heralded by the Sony Ericsson J105i Naite and C901 GreenHeart.
  It is focused on an environmentally friendly theme, but still featured with recent mobile technology and multimedia capability. It mainly uses eco-friendly materials and features eco-apps.

Phone series description

Series	Branding	Description	Origin
C	Cyber-shot	Camera-focused phones.	Cyber-shot
D	T-Mobile	T-Mobile network exclusive phones.	Deutsche Telekom
F	Vodafone (partial)	Vodafone network exclusive phones; Gaming focused phones	Vodafone / Fun
G	Web	Web browsing-oriented phones.	Generation Web
J	Junior/Low end	Low-end series	Junior
K	Cyber-shot (partial) and QuickShare (partial)	All-around phones	Kamera, Swedish for camera
M	QWERTY, fashion-focused business phones	Business-focused smartphones.	Messaging
P	PDA UIQ (Symbian) phones	Powerhouse smartphones.	PDA
R	Radio	Low end phones that are made for AM/FM radio	Radio
S	Style/Sagem	Fashion low end phones, mostly part produced by Sagem	Swivel, Slider, Snapshot, Sagem
SO	NTT docomo	Phones produced for NTT docomo Japan	SOny Ericsson
T	Talker/Older Ericsson	All-around phones/Older Ericsson handsets	Tala (Swedish for "talk")
TM	T-Mobile	T-Mobile USA network exclusive phones	T-Mobile
U	Entertainment Unlimited	Internal model number for phones launched under the “Entertainment Unlimited” brand	Unlimited
V	Vodafone	Vodafone network exclusive phones.	Vodafone
W	Walkman	Music-focused phones.	Walkman
X	Xperia	Convergence and powerhouse devices.	Xperia
Z	Ze Bobber (meaning With Flip)	Design-oriented phones/clamshells	Ze Bobber

Naming convention

Current system

After the 2008 Mobile World Congress, Sony Ericsson announced their new naming system comprising four characters, each character denoting the "Series", the "Range/Class", the "Version" and the "Form Factor" respectively.

Series	Range/Class	Version	Form Factor
(see above for series letters)	1-4: Low-end 5-7: Mid-range 8-9: High-end	(in numerical order of succession)	0-2: Candybar 3-5: Slider 6-8: Clamshell 9: Others

Some older Sony Ericsson handsets and some older that are still on the market (i.e. Sony Ericsson W890i) use suffixes for the market it is sold in, or stripped down features. The suffixes used were:

• A000a which meant for American/US market only.
• A000i was for the Asia-pacific region
• A000im was for i-mode mobile phones by Sony Ericsson
• A000c was for the Chinese market only.

All new devices created by Sony Ericsson will not use suffixes but just the model (i.e. instead of A000a there will be A000 in every market, to avoid confusion, they will also have names replaced instead of a model to avoid even more confusion (i.e. instead of Sony Ericsson U10i they named it Sony Ericsson Aino)

Previous systems

Sony Ericsson has used three methods in the past of naming their mobile products:

• The most common format uses a total of five (or six) characters, e.g. K750i.
  This format begins with a capital letter to denote the series of the phone (K750i). This is then followed by three numbers (K750i). The first number indicates the sub-series of the phone, the second indicates the amount of progression from the previous release, i.e. K700i to K750i, and the third number is always either a '0','5' or '8'. The number '8' is used either to show a variation of the phone destined for a different market without a feature, e.g. the W888 is a W880i without 3G, or it is used to separate phones which have identical specifications but the designs are different, e.g. K610i and the K618i or k800i and the k810i. The number '5' is used for newer models, where the first two numbers and the zero have already been used in a previous model, for example in the case of the W700 and the W705, which allows for more naming options. Finally, the lowercase letter at the end of the model name describes the market for which a product is intended; these are: a for the Americas, c for China, and i stands for an international version; there is also an 'im' suffix used for branding i-mode phones. Often the last letter is left out to describe the phone generically with no region specific branding.
• A newer format uses a total of three characters, e.g. P1i. It is believed that this format is intended for naming flagship models of each phone series due to the limited numbering combinations.
  It begins with a capital letter to denote the series of the phone (P1i). The number is used to indicate the amount of progression from the previous release (P1i) and the final lowercase letter, as explained above, describes the market for which a product is intended. Again, often the last letter is left out to describe the phone generically with no region specific branding.
• The oldest naming format uses a total of four characters, e.g. T68i. This format continued from the naming scheme of the Ericsson mobile business and was only ever used once.
  This format begins with a capital letter to denote the series of the phone (T68i). Ericsson had used the three letters A, R, and T to denote different series, derived from the word 'art'. The first number indicates the sub-series of the phone (T68i) and the second letter indicates the amount of progression from the previous release. The last lowercase letter indicates that it is an update of the previous model, i.e. T68 to T68i.

Another peculiar naming format was the one used in naming the Z1010; this format has not been used since the Z1010.

Furthermore, Sony Ericsson always give their phones codenames when developing. Mainly to keep the information secret and to prevent leaks. All codenames are female names, and some have been taken from the female players of the Sony Ericsson-sponsored tennis tournament, WTA...

Financial information

Annual shipments of units 2003 to 2009

Sony Ericsson posted its first profit in the second half of 2003. Since then, the sales figures from phones have been:

• 2004: 42 million units
• 2005: 50 million units
• 2006: 74.8 million units
• 2007: 103.4 million units
• 2008: 96.6 million units
• 2009: 57.1 million units
• 2010: 43.1 million units

According to the Swedish Magazine M3s issue 7/2006 Sony Ericsson is the best-selling phone brand in the Nordic countries, followed by Nokia.

In the third quarter of 2009, Sony Ericsson became the world's fourth largest mobile phone manufacturer with 4.9% of market share after Nokia (37.8%), Samsung (21%) and LG (11%).

Compatibility

During E3 2007 Media and Business Summit, Phil Harrison, Sony CEO showcased a Sony Ericsson phone using the PlayStation's XMB. A select group of phones are also said to integrate into PlayStation Home (final product)

During the announcement of Sony Ericsson K850, W960 and W910 some review sites have shown that those mentioned phones and future mid-range or better phones will have Media to replace the standard File Manager which will be moved to the Organiser of the phone. The Media manager possesses a UI that resembles the XMB interface found on Sony TV, PS3, and PSP products. The mobile developer site confirmed from their spec sheets and white papers that the XMB media manager is standard to the phones running Java Platform 8 also known as A200 Platform and Symbian devices like Sony Ericsson Satio and Sony Ericsson Vivaz.

Operations

In 2009 Sony Ericsson announced that it was moving its North American headquarters from Research Triangle Park, North Carolina to Atlanta. The headquarters move was part of a plan to reduce its workforce, then 10,000 employees, by 20%. As of that year Sony Ericsson had 425 employees in Research Triangle Park; the staff had been reduced by hundreds due to layoffs. Stacy Doster, a spokesperson of Sony Ericsson, said that the proximity to Hartsfield-Jackson Atlanta International Airport's flights to Latin America and the operations of AT&T Mobility influenced the decision to move the USA headquarters. Sony Ericsson will close the Research Triangle site.

Environmental record

Sony Ericsson ranks 2nd behind Nokia out of 18 leading electronics makers in Greenpeace’s Guide to Greener Electronics that assesses companies' policies on toxic chemicals, recycling and climate change. It is the first company to score full marks on all chemicals criteria in the ranking. Sony Ericsson is ahead of many of its competitors in eliminating chemical substances in its products and is currently finalizing the phase out of antimony, beryllium, phthalates and the very small remaining use of BFR.

Greenpeace criticises Sony Ericsson's limited take-back and recycling programme, as well as its limited use of recycled plastic in its products. However, in June 2009 launched its first GreenHeart series device, the C901, which indirectly emits a 15% less of CO₂ during its fabrication and usage, compared to other SE phones. It is also packed in a small box without paper manual, includes an eco-charger, and its cover is made of recycled plastic.

Sales

Sony Ericsson's sales figures for Q2 2010 showed a significant decline. The Sony Ericsson phone sales volume grew over the first quarter a modest 4.8 percent. However, it was well up to the 2009 quarter volumes varied between 13.8 and 14.6 million units.

See also

• Sony
• Ericsson
• MyPhoneExplorer - full featured Sony Ericsson manager software for MS Windows, (able to backup, synch and editing almost all data on the phone via Bluetooth, infrared or USB)
• Media Go - music, photo, video, and game management software made for Sony Ericsson phones
• Disc2Phone - music management software made for Sony Ericsson phones
• SonicStage - music management software made for Japan market phones.
• PlayNow - global content distribution portal
• List of Sony Ericsson products

External links

• Sony Ericsson