Sony Ericsson shifts focus to high-end handsets

Sony Ericsson is to focus on higher margin products this year rather than less profitable devices.

The vendor, hit hard by falling handset sales in 2008, said it plans to improve its high-end product range whilst dropping low cost, low profit handsets.

CEO Hideki Komiyama said the strategy is designed to help Sony Ericsson weather the current economic storm.

Komiyama’s outlook is pessimistic; he expects unit sales for the overall market to fall 5-6% this year.

Despite this, he is confident that the company maintained its 8% market share in Q4.

It first achieved this in Q3, overtaking Motorola to take third position in the market share table.

The company’s shift towards high-end handsets will benefit mobile developers, including games firms.

However, the move is expected to be a hard blow for Sony Ericsson’s Taiwan-based suppliers.

Taiwan-based ODMs Arima Communications and Chi Mei Communication Systems (CMCS) both anticipate losing business under Sony’s plans.

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