Headsets

Making a big move into the world of wireless entertainment and social media, Sony Ericsson (News - Alert) announced the release of its X10 flagship mobile phone on Tuesday.

 

The Sony Ericsson XPERIA X10, available in early 2010, is slated to be “the first phone in a family of phones” to deliver a consistent user experience where communication truly becomes entertainment, according to the London-based handset manufacturer. The X10 will be the first to introduce SE’s new UX platform that will evolve across the product portfolio and expand over time with new features and capabilities.

 

Sony Ericsson’s first handset to incorporate the super-hip Google Android operating system, the XPERIA X10 model sports a four-inch-wide touch screen, and is loaded with an 8.1 megapixel camera, 3D games and video applications, among other things.

 

“The XPERIA X10 and the family of phones launching in the first half of 2010 underpin our commitment to an open and multi-platform strategy that maximizes choice for the consumer and delivers the best possible consumer experience,” said Bert Nordberg (News - Alert), president of Sony Ericsson. “The reaction from our global operator partners to the XPERIA X10 has been extremely positive and we will be rolling out across the world including Japan from the first half of 2010.”

 

Some say the manufacturer’s first phone using Google’s Android operating system – a direct rival to Apple’s iPhone (News - Alert) -- could help bring the it into a positive light after a its most recent dismal earnings.

 

TMCnet recently reported that Sony Ericsson posted a $245 million net loss in the third quarter of 2009, compared with a $37.7 million loss in the third quarter of 2008. Though the handset maker shipped 14.1 million units during the quarter, total sales dropped from $4.17 in the same period last year to $2.4 billion.

 

“Having had a relatively weak presence in the smartphone and touchphone market segments, Sony Ericsson will definitely be served well by the addition of a touchscreen-enabled smartphone to its device portfolio,” Alex Spektor, a wireless device analyst with Strategy Analytics, told TMCnet. “However, given that the X10 is a flagship-level device aimed at ‘prosumers’, it does not help to address the growing consumer-level touchphone segment, which is something that rivals LG and Samsung (News - Alert) have been doing very well in recent quarters. Furthermore, Sony Ericsson’s portfolio is still not effectively addressing the growing messaging phone category.”

 

Overall, the X10 should have a “halo effect” on Sony Ericsson, Spektor said, adding that a stronger portfolio in key segments like touchphones and messaging phones will be needed to take full advantage of this effect. Strategy Analytics believes Android’s share of the North American and Western European smartphone market will grow from 5.5 percent in 2009 to 9 percent in 2010.

 

“There is solid momentum in the vendor adoption of the platform, but North American leader BlackBerry (News - Alert) and Western European leader Symbian will continue to dominate through at least 2012,” Spektor said.

 

One concern raised is that Sony Ericsson’s current bestseller Satio could be hurt in the sales period ahead of the holiday season if consumers want to wait to purchase the X10. Another concern is that Sony Ericsson could only be hurting itself by trying to latch onto too many platforms.

 

“Sony Ericsson's recent and planned smartphone releases now include Android, Windows Mobile, and Symbian platforms,” Spektor told TMCnet. “While this tactic might hedge against some of the market risks, like regional preference variations or one platform falling behind in developer support, Sony Ericsson takes on the risk of spreading its finite R&D resources across too many software platforms. Following a trial period during the next year, it would be advisable for Sony Ericsson to reduce to just one or two smartphone platforms.”