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Sony Ericsson to launch low-priced phones

Dubai: Sony Ericsson is about to hit a new low - a low-priced phone, that is.

Beginning in the first quarter of 2008, the world's fourth-biggest cellphone maker is set to unveil a range of affordable phones to challenge Nokia's market dominance.

Until now, Sony-Ericsson has focused on mid- and high-end smart phones, heavily marketing its camera and music features. One of its smart phones was showcased in the latest James Bond thriller, Casino Royale, in a high-profile product placement.

"We want to be in the top three for mobile phones in the short to medium term," said Husni El Assi, general manager of Sony Ericsson Middle East and North Africa. "To reach that, we have been working on strengthening our entry portfolio."

In March it signed an agreement for French electronics firm Sagem to produce its new entry-level devices, which will be priced around $60 - slightly more costly than Nokia but with a few additional features, El Assi said.

Nokia phones sell for as little as $20 to $30, and it has enjoyed a clear lead in Middle East and African markets, bolstered by its range of affordable phones that appeal to many in these emerging nations.

"This move is extremely important because we cover a wide area in the Middle East and North Africa where countries are developing," said El Assi. "You see a clear demand for entry level products. In some countries it makes up over 80 per cent of the market."

The challenge it faces, El Assi said, is to ensure the Sony Ericsson brand retails its high-gloss appeal even as it produces more affordable devices.

"We don't want to be the cheapest phones on the market," he said. "When we go into entry level products we make sure our phones follow the Sony Ericsson touch and feel."

The fruits of the partnership with Sagem will provide an as-yet unspecified number of entry level devices. To support this push Sony Ericsson will open sales and marketing offices in East Africa and Egypt.

If it is successful, it will be one step closer to achieving its goal of displacing Samsung or Motorola as the third-largest cellphone maker within the next five years.

"Sony Ericsson increasing fast," noted Simon Baker, telecom analyst at IDC, a market research firm.

The company currently holds a nine per cent global market share, a Reuters poll found.

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