The Sony Ericsson W810i-the vendor’s flagship Walkman music phone, described as a “multimedia beast” by one analyst-will be closely watched by some in the industry to see how well it sells at Cingular Wireless L.L.C.
Why?
The answer reflects the industry’s increasing time-to-market pressures, a new pricing environment that presents consumers with difficult choices and even competition from other handsets by Sony Ericsson Mobile Communications L.P. The W810i’s fate also highlights the importance of carrier deals for Sony Ericsson, which has pursued a less carrier-centric approach than its competitors in the largely carrier-driven U.S. market-a market it would like to excel in.
“The W810i has an important mission,” said Brad Akyuz, analyst at Current Analysis. “It helps boost Sony Ericsson’s profile in the U.S. marketplace and it balances its portfolio.”
Sony Ericsson had 10 to 12 percent of Cingular’s handset lineup, mostly models priced in the low-tier or offered with prepaid service, before September, according to Current Analysis data.
“That’s not the way a vendor wants to grow their presence at a U.S. carrier,” Akyuz said.
Sony Ericsson took up the U.S. challenge by upgrading its original W800i Walkman handset, expanding it to a quad-band phone with support for Cingular’s 850 MHz GSM network in the United States and wrapping it in a black body with wider appeal than its predecessor’s white-and-orange scheme.
“This is the best Sony Ericsson phone offered in the U.S., with a great balance of music and imaging, an easy-to-use user interface and an FM radio that works perfectly,” said Akyuz. “It’s a multimedia beast.”
When the handset was introduced by Sony Ericsson at the Consumer Electronics Show in Las Vegas in January, Najmi Jarwala, president and head of North American operations at Sony Ericsson, noted: “The W810i Walkman phone was specifically designed with the needs of North American operators and consumers in mind, and it is the most advanced Walkman phone to date created for this region. If the sales of the current Walkman phones are any indication, we are expecting big things for the W810i.”
By the time the W810i finally debuted at Cingular last month at $150, the landscape had shifted, according to Akyuz. First, handset prices have plummeted for a variety of reasons-$50 buys a lot of phone today, including the Samsung Electronics Co. Ltd. Synch, a clamshell HSDPA phone supporting Cingular’s music service. Another Sony Ericsson music phone, the W300i, sells at Cingular for a mere $20.
Moreover, Cingular recently launched a music subscription service, which does not work on the W810i; instead, owners are provided with Disc2Phone software for side-loading. Cingular has touted the W810i as a welcome addition to its portfolio of music phones from a handset brand closely identified with music phones.
Nevertheless, Cingular almost immediately knocked $50 off the W810i, likely a popular move for devotees of Sony Ericsson’s style and features who’d waited patiently for its appearance. The market, approaching warp speed, has not been as hospitable, according to Akyuz.
“There is no question that the feature-rich W810i is an excellent value at $99,” Akyuz said, pointing out that the handset sells, unsubsidized, in Europe at $450. “However, the new price equilibrium in the marketplace will make it a hard sell.”
Given Sony Ericsson’s decision to drop CDMA to focus only on GSM markets, Akyuz has a little advice that he thinks is already being heeded.
“I think the W810i would make a great addition to T-Mobile (USA)’s line-up,” he said. “Due to network constraints, they don’t have a big music play. I’m sure they’re talking.”
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DEVICES & STRATEGY
Device name: Walkman W810i
Market: Cingular Wireless’ retail stores, Web site and big box retailers
Retail cost: $100 with two-year contract
Specs:
* 3.9 x 1.8 x .8 inches, 3.9 ounces
* Bar form factor
* Quad-band (850, 900, 1800, 1900 MHz)
* GSM/EDGE
* MP3 player with dedicated controls, headphones
* 128 MB removable memory, upgradeable to 4 GB
* 2 megapixel camera
* Bluetooth
* FM radio
* USB connectivity
