Xperia Mini 10, Vivaz Pro unveiled by Sony Ericsson

Sony Ericsson Mobile Communications on Sunday unveiled three new phones focused on video and social media in a bid to reinvigorate its portfolio after its market share fell below 5% in the latest quarter.

Sony Ericsson, the mobile-phone-making joint venture of Japan's Sony Corp. (SNE 34.45, +0.23, +0.67%) and Sweden's Ericsson (SE:ERICB 71.90, +0.65, +0.91%) (ERIC 10.09, 0.00, 0.00%) , announced the Symbian- and Android-based models just before the start of Mobile World Congress, the wireless telecoms industry's largest annual gathering.


MWAD473_sony_e_ME_20100214060652-1.jpg


The Sony Ericsson Vivaz Pro

The event takes place each February in Barcelona and is many handset makers' favourite place to unveil new star products for the year, although iPhone maker Apple (AAPL 201.80, -1.60, -0.79%) , for instance, does not participate.

The Congress is particularly important for Sony Ericsson this year as it is in the midst of restructuring its portfolio after losing significant market share to more aggressive and nimble rivals like Samsung (SSNG.Y 218.82, -0.45, -0.20%) and LG over the past two years. The joint venture's share dipped to well under 5% in the fourth quarter, its lowest level in seven years, according to data from research firm Strategy Analytics, as it struggled to keep up with changes at the high end and failed to
roll out models quickly enough.


Preview
Of Sony Ericssons's Vivaz and Vivaz Pro
Sony Ericsson's Daniel Sandblom gives sneak preview of latest Sony Ericsson Vivaz\Pro handset.

Sony Ericsson shipped just 57 million phones last year, almost half its peak of 103 million in 2007.


Late last year, however, it rekindled investors' hopes after it announced its first phone based on Google's (GOOG 538.82, -2.48, -0.46%) Android operating system, the Xperia X10, which is expected to be its star device for the first half of the year.


On Sunday Sony Ericsson sought to leverage the good reviews it has received for that device by announcing two compact versions: the Xperia X10 mini and
the mini pro. The move mirrors rival Nokia Corp.'s (NOK 13.24, -0.01, -0.08%) decision to make a smaller version of its N97 smart phone.

Both the Xperia X10 mini and the mini pro run on Android and will be available in selected markets from the second quarter. The pro has sliding qwerty keyboard to make texting and emailing easier.


Pricing was not announced, though analysts at U.K.-based telecoms consultancy CCS Insight predicted ahead of the Congress that Sony Ericsson would probably try to release Android phones below the 250-euro ($340)
price tag at the event.

When Sony Ericsson launched the original Xperia X10 in November, the phone received enthusiastic reviews for its stunning touchscreen and Timescape user interface, which displays the user's latest emails,
text messages and social media alerts in a format that resembles a stacked deck of cards.

Timescape is part of the user experience that Sony Ericsson has laid over Android and is a feature of the mini versions announced Sunday.


"There has been an enormous buzz around Xperia X10, so it is really exciting to be already unveiling compact versions of this powerful proposition," Chief Creation Officer Rikko Sakaguchi said in a statement.


CCS analyst Geoff Blaber said of the minis: "These products are strong and badly needed additions to the portfolio. Their differentiation from an avalanche of other
Android devices should help Sony Ericsson rebuild in mid and high tears."

Although Sony Ericsson has recently focused on rolling out Android devices, it also announced a new Symbian-based phone on Sunday, the Vivaz pro. Once again the phone is a relative of an existing device: the high-definition-video-focused Vivaz announced in January. But the pro comes with a qwerty keyboard.


The device boasts the usual features in its category including an 8.1 megapixel camera and will be available in selected markets from the second quarter.


The launch of the Vivaz pro is a sign that Sony Ericsson, just like Nokia, isn't ready yet to let go of the Symbian operating system, though it did
admit in its fourth-quarter conference call that support for four different systems may be unsustainable in the long term.

CCS Insight predicted then that the firm could soon drop Microsoft Corp.'s (MSFT 28.50, +0.15, +0.53%)
Windows Mobile or Symbian.

Over the past few quarters and under the leadership of President Bert Nordberg, Sony Ericsson has continued cut jobs and trimmed production capacity as part of its efforts to refocus on value at least as much as volumes. It's also stepped up efforts to roll out models that do more than just rely on Sony's strong competences in camera optics and music.


The company posted a narrower loss in the fourth quarter, as its cost-cutting efforts bore fruit and the international launch of new models like the Satio and the Aino boosted margins. Read more about Sony Ericsson's fourth-quarter performance.


Sony Ericsson has given no guidance for the year other than to say it aims to return to profitability as soon as possible. In order to be profitable, the company needs to consistently report margins in the mid-20 range, Chief Financial Officer Ulf Lilja said at the time of the results.
 
Top