Wednesday, January 18, 2006

SonyEricsson sees strong end 2005

SonyEricsson ended 2005 on a high. Earnings and revenues soared and they have recaptured the number 3 spot from LG Electronics.

SonyEricsson has stubbornly kept to a strategy of fighting for the high end of mobile phones. They pack their phones with features and they always have some of the best designs. And it looks like this strategy is paying off. As their margins are some of the best in the industry and they are now also seeing good volumes.

In fact, the trend toward well designed, high end consumer electronics devices seems to be paying off in key sectors. Just look at Motorola's Razr phone and Apple's iPod. Utlimately if you get it right the consumer will pay up.

The other interesting piece to note is that SonyEricsson have sold 3M of their Walkman music phones since they launched them last August. That's a blistering start and one that could pose a real threat to Apple's iPod, particularly in Europe and Japan. And SonyEricsson aren't standing still, they're launching a bunch of new Walkman phones this year.

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