Sony Ericsson to reduce handset range by 20 per cent
Too many mobiles
Sony Ericsson plans to slash the number of handsets in its mobile phone line-up following its first quarterly loss in more than five years.
Dick Komiyama, Sony Ericsson's President, said the company will cull 20 per cent of its current handset range, according to a Financial Times report.
Sony Ericsson's website currently displays a range that extends to 73 phones. It's not clear whether the company will drop 15 of them straight away or manufacture fewer models going forward.
Either way, Sony Ericsson will be left with 58 phones on offer, which is barely better than 73 if you're trying to stop confusing consumers with an overwhelming range of models.
We'd argue that the company should cut its range to 20 per cent. Does the world really need any more Sony Ericsson models than that? Or from any other vendor, for that matter?
In addition to the 20 per cent range reduction, SE will also merge its three handset development divisions into one. Both changes, Komiyama claimed, will help the company reduce duplication and improve efficiency.
The firm reported a net loss of €25m ($32m/£20m) during its third fiscal quarter of this year, which ended on 30 September, compared with a profit of €267m ($342m/£211m) in the same period last year.
SE shipped 25.7m handsets during Q3 FY2008.