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Why Market Share of Sony Ericsson Decreasing

  • Date Submitted: 06/25/2011 09:57 PM
  • Flesch-Kincaid Score: 46.8 
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Sony Ericsson Mobile Communications AB is a joint venture established on October 1, 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to manufacture mobile phones. The reason for this venture is to combine Sony's consumer electronics expertise with Ericsson's technological knowledge in the communications sector. Bert Nordberg is the president of the company since October, 2009. Sir Howard Stringer, CEO and President, Sony Corporation, is chairman of the board
The company's global management is based in Hammersmith in London, United Kingdom, and it has research & development teams in Lund, Sweden; Tokyo, Japan; Mexico City, Mexico; Beijing, China and Redwood Shores, United States. By 2009, it was the fourth-largest mobile phone manufacturer in the world after Nokia, Samsung and LG. The sales of products largely increased due to the launch of the adaptation of Sony's popular Walkman and Cyber-shot series. In 2010, its market share had dropped to sixth place behind Research in Motion and Apple.
It was growing but in first quarter of 2008 its market share dropped from 9.4% to 7.9%, profits fall significantly by 43% and sales by 8% despite favorable conditions that the handset market was expected to grow. In second quarter it saw net profit crash by 97% and decided that it would cut 2,000 jobs, leading to wide fear that Sony Ericsson is on the verge of decline along with its struggling rival, Motorola. In third quarter the profits were much on the same level, however November and December saw increased profits along with new models being released such as the C905 being one of the top sellers across the United Kingdom. In 2009 it sold 57.1 million units and again its market share decreased by 3%, from 7.9% to 4.9%.
Market share:
Market share is the percentage or proportion of the total market that is served by a company or business. It can be measured by dividing the company’s sales volume by...


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