Sony Mobile Communications

Sony Mobile Communications AB (formerly Sony Ericsson Mobile Communications AB) is a multinational mobile phone manufacturing company headquartered in London, United Kingdom and a wholly owned subsidiary of Sony Corporation. It was founded on October 1, 2001 as a joint venture between Sony and the Swedish telecommunications company Ericsson. Sony acquired Ericsson’s share in the venture on February 16, 2012. Sony Mobile Communications has research and development facilities in Lund, Sweden; Tokyo, Japan Beijing, China and Silicon Valley, United States. In 2009, it was the fourth-largest mobile phone manufacturer in the world. By 2010, its market share had fallen to sixth place.

Origins

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 mobile phone market for decades, and was the world’s third largest 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 cost Speculation began about a possible sale by Ericsson of its mobile phone division, but the company’s president said it 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. Sony was a marginal player in the worldwide mobile phone market with a share of less than 1 percent in 2000. By August 2001, the two companies had finalised the terms of the merger announced in April. The company was to have an initial workforce of 3,500 employees. Operations

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.

Products
Current

* 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 S00) uses the BRAVIA brand. BRAVIA branded phone are able to show 1seg terrestrial television.

* 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 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. Former

* 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 new market segment 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 when pressed opens the media centre. Sony Ericsson’s Walkman phones have formerly 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 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 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.

Sales and market share
Calendar year| Unit sales (millions)|
2004| 42|
2005| 50|
2006| 74.8|
2007| 103.4|
2008| 96.6|
2009| 57.1|
2010| 43.1|
2011| 34.4|

Operating income − 206 million (2011)
Profit – 247 million (2011)

Marketing
Social media
During 2010, in 11 months, Sony Ericsson’s Facebook fan count rose from 300,000 to 3.9 million to become the 40th-largest brand on the social networking site. The company aims to capitalise on this fanbase and increase engagement by profiling these fans and matching them to dedicated content. It will also analyse the top commenters on the Facebook page and ensure engagement through special content and offering these fans the chance to visit Sony Ericsson offices. Sports sponsorship

As of 2011, Sony Ericsson sponsors the UEFA Champions League and the Sony Ericsson Open tennis tournament in Miami. According to the head of global marketing partnerships Stephan Croix, “our sport sponsorships allow us to promote our phones in a subtle and authentic way to our fanbase. Our promise to fans is to enrich their experience during the game but also before and after.”

Environmental record
Sony Ericsson ranks 6th out of 15 leading electronics makers in Greenpeace’s Guide to Greener Electronics that assesses companies’ policies on climate and energy, sustainability and how green their products are. The company scores 4.2/10 and is one of the top scorers in the Products category, gaining maximum points for the energy efficiency of its phones and doing well for its avoidance of hazardous substances in its products. In June 2009, Sony Ericsson launched its first GreenHeart series device, the C901, which indirectly emits 15% less 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.