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Sony Ericsson eyes China and India
Andrew Parker and Maija Palmer in London
 
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February 12, 2008

Sony Ericsson has admitted that its presence is "weak" in India , China and the US, and has designated these countries as priorities while it seeks to become one of the three largest mobile phone makers by 2011.

Dick Komiyama, the company's new president, expressed confidence it would hit its 2011 target through organic growth, and ruled out buying the handset division of Motorola, the troubled US mobile-maker.

In his first interview since becoming Sony Ericsson president in November, Mr Komiyama also told the Financial Times that he would consider the case for the company making cheap handsets that cost as little as $25 each

If he were to implement this shift, it would mark a big change of strategy, since the company has hitherto concentrated on medium and high-priced phones. However, he refrained from committing himself to this shift yet.

Nokia has consolidated its grip as the world's largest handset manufacturer by establishing a strong presence in emerging markets. Sony Ericsson is the fourth-largest handset maker, but it badly trails Nokia.

Nokia had a 38.1 per cent market share of the total number of mobiles sold as of September 2007, followed by Samsung on 14.5 per cent, Motorola on 13.1 per cent and Sony Ericsson on 8.8 per cent, according to Gartner, the research firm.

"We have three areas where we need emphasis to strengthen," said Mr Komiyama, pointing to India , China and the US. He described Sony Ericsson's sales performance in these countries as "rather weak".

Sony Ericsson, a joint venture between Japan's Sony and Sweden's Ericsson, plans to increase its market share by customising more of its phones for individual markets.

The company on Sunday unveiled what is likely to be seen as a riposte to Apple's much-hyped iPhone.

At the Mobile World Congress in Barcelona, the wireless industry's main annual conference, Sony Ericsson released the X1, a phone that also serves as a music player and provides internet access. The X1 underlines Sony Ericsson's commitment to sophisticated mobiles, and will spearhead its new push on the US market.

But Mr Komiyama said he wanted to explore the merits of Sony Ericsson making cheap handsets, adding such a move could be made within three years.

These mobiles, which fell in price to $25 per handset last year, provide basic phone and text services for emerging markets.




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