Nokia vs Sony Ericsson
December 16th, 2008 by admin | 1 Comment | Filed in eCommerce AssociatesWhen its comes down to it, the average shopper doesn’t really care about the market share and balance sheet of the company behind the phone on which they have their beady eye.
No, it’s more emotive that that. Is it the right colour, does it flip open, did I like my last one; and then, onto things like how well will the camera work and oh, yes, how much does it cost?
But in a shoot-out between Nokia and Sony Ericsson, Nokia wins hands down when it comes to market dominance.
Lets look at some basics. Nokia sells more phones. It has a greater product range and it has models to suit both the lower and upper end of the market. In short, it’s offering to the consumer, which numbers around 100 different handsets at any one time, is pretty impressive.
It is reckoned that Nokia is one of four manufacturers in the premier division with the others, in order of global market share, being Samsung, then Motorola, Sony Ericsson and LG. Now if you look at the figures in detail, you see that Nokia has a staggering 40% share in 2008, with Samsung in second place at 14%, Motorola on about the same at 14%, Sony Ericsson at 9% and LG bringing up the rear with 7%. The guys in the premier division account for well over 80% of all mobile phones purchased.
The second division includes guys like Apple (who aimed for a 1% share of the market with the iPhone, but seem to have fallen short); HTC; Fujitsu; Panasonic; Research in Motion (BlackBerry); and, Siemens.
Nokia has also played it right with the vast expanding markets such as China, in which has given it great boosts to it’s market share.
And as we enter a global downturn (at the time of writing), Nokia’s bundles of cash and virtually debt-free balance sheet will stand it in good stead for any future financial tribulations.
And Nokia is still facing questions over certain aspects of its operation, including its email functionality (being placed in the shade by the makers of the BlackBerry), its lack of touch screen products (putting it well behind HTC and Apple), and its slowness to develop a mobile phone infrastructure (with which Sony Ericsson is doing so well as part of a joint venture).
Sony Ericsson was established later than Nokia. It was the coming together of Japanese Sony Corporation and Swedish company Ericsson to form a joint venture in 2001 to develop and manufacture mobile phones.
They joined forces after Sony realised it was only a bit player in an ever-expanding marketplace and Ericsson, struggling to cope with manufacturing problems and huge losses, knew it had to have a partner with which to go forward.
The joint venture went through a sticky patch and just as it looked like it might well end on the rocks, the two companies decided to commit extra funds and refocus its activities on mobiles which were branded as multi-media devices.
It then chose to support GSM technology, a wise choice, and acted to stop Nokia gaining full control of Symbian, an industry consortium producing operating systems for smartphones. It then put it’s weight behind phones that offered the user more than just a mobile phone handset.
This strategy came to real fruition with the launch of affordable phones which were also digital music players, using the Walkman brand, and allowing file formats such as MP3 and AAC to be played.
Also, whilst developing the music side, it also promoted the phone as a camera and introduced the Cyber-Shot brand, pushing the small digital camera envelope from five to eight megapixels, built into a mobile phone.
And in a nutshell that is the difference between Nokia and Sony Ericsson. The first is a giant which dominates the market, offering all things to all men, whereas, after a distinctly rocky start, Sony Ericsson has carved a profitable niche for itself by providing cool and fun phones, with equally cool applications.
You’d be hard pushed not to find the phone of your dreams from Nokia, but then again, you might just want an offering from a smaller player which takes music and pictures very seriously indeed.
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Tags: Blackberry, Compare Mobile Phones, Fujitsu, HTC, iPhone, Mobile Phone, Nokia, Panasonic, Research in Motion, Siemens, Sony Ericsson, Telecommnications
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