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Motorola and Foes III

Sony Ericsson

Bagging rank 4, Sony Ericsson kept to its progress in the global mobile cordless phone market in the second quarter, declaring a 14.2 sequential shipment increase and a stunning 58.6 percent year-over-year climb. This was the highest year-over-year growth rate achieved by any of the Top-5 handset OEMs.

By all reports, the company has obviously been on a roll for far longer than a year now. According to industry claims, it likely became more apparent when the company took over the No. 4 position from LG. Sony Ericsson has continued to announce positive shipment yields largely owing the company’s solid position in the multimedia cordless phone industry as well to its priceless brand name. The company topped a 9.4 percent market share in the second quarter of 2007. This allowed the company to maintain its position quite well, as it was still 2.2 percentage points to the lead than LG.

However, Sony Ericsson did have a few bouts of ill project results to deal with. This was made apparent when the company suffered a 4 percent ASP decline in the second quarter. Allowances had to be made for this though. For the reason that one still had to take into account the fact that the company just recently entered the market for inexpensive mobile cordless phones.

These inexpensive mobile cordless phones were built as well as designed and later, produced on a wider scale than before to address rising global communication demands and needs in a number of emerging regions. Thus, while not quite operating at a loss, the company had more than profits in mind when it set out to undertake the reins for this specific project and so, cannot wholly be deemed to had failed simply by the 4 percent decline that the company suffered. Still, in the face of this decline, the European/Japanese joint operation is still well and able to keep its leading ASP position from being usurped by other rivals in the field.

As for a bit on positive tidings, the second quarter of 2007 did manage to bring on normal as well as healthy seasonal sales patterns. Shipments were able to reach an impressive figure of 266 million mobile cordless phones, up 5.1 percent from 253 million in the first quarter. For the first half of 2007, shipments finished with a total of 519 million units of consumer communication electronics the likes of mobile cordless phones. iSuppli forecasts that shipments of 1.1 billion units will be achieved in the year 2007, taking the company up 12.9 percent from the 990 million total it had in the year 2006.

Motorola 

However, much as these improvements seem exceedingly laudable, Motorola assures the consumer public that active efforts have already began to address and ultimately see to the company’s problems. Motorola remains within the sphere of the world’s ten top manufacturers, perhaps biding its time until it can turn the market on its ear again. Considering the reputation it has built over the years, Motorola, despite its problems, can very well do it—and then some.