Thursday, May 27, 2010

Smartphones at smart prices...

Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri

Sony ericsson has recently launched three new slick phones namely Satio, Aino and Yari that the company is touting as “smarter phones.” It’s noteworthy that Sony Ericsson, which was at the fourth spot in the Indian handset market in 2008, had come under extreme pressure all through 2009 as it lost a considerable market share in the mid- and high-end category to Korean rivals like Samsung and LG. The growing popularity of their affordable touch screen phones were the major cause of worry for Sony Ericsson. However, now with the launch of these phones, the company plans to come back in action. Anil Sethi, President, Sony Ericsson says, “In today’s market place, the definition of a smartphone is getting increasingly fuzzy as people want their phones to enable them to do it all at the same time. And with the help of these three phones, we expect that the consumer would be able to do all and help us in writing a new chapter for Sony Ericsson in India and strengthen its position as an aspirational and an irresistible brand.” Indeed Satio, Aino and Yari come loaded with all possible features. However, the key to succeed in the Indian market lies not just in loading in features but also in getting the pricing right. Unfortunately, it seems that Sony Ericsson has not learnt the art of pricing its products as was evident in the case of its earlier flop show Xperia X1. On the other hand, Samsung (Star, Corby) and LG (Cookie, Arena) have launched pocket-friendly smart phones, which reflects in the huge sales of their offerings. If Sony Ericsson does not want to repeat history, it will have to re-look at its pricing strategy and price its smartphones smartly.

Surbhi Chawla

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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