Phone Price War Drags Sony Ericsson to Loss - Essay Example

Task Phone price war drags Sony Ericsson to loss Article Summary The article reviews one of the finest stylish phones in the 21st century, Sonny Ericsson, which has witnessed a tremendous user increase in the modern century. However, the phone faces opposition from other brands from Samsung and HTC due to their affordability and provision of similar properties. The subsidiary of the Sony Company has recently witnessed losses due to a reduction in the shipment (Thomas). The reduction in the shipment of the product is articulated to increased competition, which is a witnessed 20% decline comparing the attribute to the previous year.

Competitors The improved Android technology that the phone has invented increased sales tremendously surpassing the older versions, but the figure would not be enough to offset the previously witnessed losses. Nokia and Apple have passed the company’s shipment figures with their attempt to introduce better brands that consumers can easily access. However, Apple’s latest I-phone released mobile technology has been predicted to attract more buyers as the analysts prefer its features to other mobile companies.

The competition has included Samsung and HTC to develop the Smartphone industry with each brand setting an added feature to attract consumers (Thomas). These companies have provided intense competition as the new technology takes center stage on the leading markets. Response The losses totaling to $199 have made the company reconsider their partnership deal with Sony that is expected to take full control of the company. Sony Ericsson had invested more funds in research and development of the new brand, therefore, having a higher market value.

This incentive promoted reduction in overall sales because consumers prefer an affordable brand to their prices. The company has decided to phase out the older models in order to offer equal platforms for competition within the other mobile phones that have embraced the technology. This paper analyzes the strategies applied by Sony Ericsson and the market impairments it faces in the current economy, with a focus on improvements to boosts sales. Review (Why and So What) I picked this article because it talked on the most important gadget in the modern century when fusing entertainment with contacting other individuals.

Mobile phones have played key roles in the communication industry and are fast gaining recognition as personalized gadgets. Sony Ericsson has thrived in the market due to its features it offers in the mobile technology. The previous models in the last century had dominated the market due to the feature they provided and its affordability. This article was interesting because despite the new brands offered, the company has witnessed a loss with the launch of the new smart phones. Product features and Pricing The phones are equipped with a wider range of applications from advanced camera coverage to clarity in the music played.

It also holds the capacity to display information on user contacts and general background. With its stylish display and themes, Sonny Ericsson has managed to gain fame as a leading mobile provider. They had targeted a larger market with the improvement and adjustments in price. However, there has been increased competition in the 21st century with the new Smartphone technology threatening to phase out the old mobile handsets. The trend has been applied to the leading mobile phone makers that have resorted to engage in competition in marketing their brands.

The company aims to increase its sales by focusing majorly on the new technology by seizing to manufacture the old handsets. One of the latest developments in the android technology that Sony Ericsson has created is the XperiaTM S with a 12.1 mega pixel camera with up to an 8-hour talk time. These brands are most expensive with the prices ranging from 140-500 $ range. They expect to cover for the manufacture cost by reducing on the prices of the old technology phones that are currently out of stock.

Promotion The new Android technology, the company has witnessed a market increase and consumer demand with its advanced features promising better services to its consumers. The change in consumer demand has not been successful due to the previously incurred losses that were tremendous failing to upset the overall net earnings. The solution that the article has presented to protect the company is its full take-over by the partner Sony who are to acquire the complete ownership of Sonny Ericsson.

However, there is a need to focus on the users who dictate the sales of products. To attract more customers and realize more sales, the new owner of the mobile company Sony needs to advance in technology, but regulate the purchase prices of the product. The current unwanted macroeconomic constraints are temporary, and once the phase is outwitted, the market would desire a better brand at affordable prices. Competition is another entity that should be surfaced and the best means to apply the strategy would be to analyze the market trends.

Through research and consumer analysis, there is a provision that can set the trend needed to increase production. Apart from affordability, consumers often provide certain needs across ages, with the younger generation and business class providing the larger mobile market demand. These entities, when analyzed by the company, would help in profit and sale boost. Summary There is a stiff competition in the mobile market of the 21st century in Smartphone technology. It had once been a company entity in the mobile industry; Sonny Ericsson has been easily phased out by other brands like Apple that observe the new technology.

The market demands the Android software with limited difficulty in accessibility and affordable prices. Advertising strategies that popularize the brand would inform the population of the new adjustment in the phone’s strategies. I hope that the new owners of the mobile company, Sony, would observe the new market trend and target the larger population through surfacing the old prices while maintaining quality. Work Cited Thomas, Daniel. Phone price war drags Sony Ericsson to loss. Telecoms. 2012. Web.

3 January, 2012. Available at: