OXFORD, United Kingdom—Having launched its first W-CDMA handset in Cannes last month, Sony Ericsson is trying to convince Hutchison that it does have a medium-term third-generation (3G) cell-phone strategy in an attempt to secure a volume contract for the device. The two firms are reported to be discussing a potential order for 500,000 3G handsets, but Hutchison is said to be concerned with Sony Ericsson’s capacity to deliver this quantity on time and at the right price.
Sony Ericsson, which has continued to struggle in the terminal marketplace, claimed its new Z1010 3G handset will become available in commercial volumes in the second half of this year. Jan Wareby, the company’s vice president for sales and marketing, said the device would be priced at around the same price as its P800 smart phone—750 euros (US$824)—and would not suffer from the supply problems it unfortunately experienced with some of its other handsets.
“We have learned from our past problems,” he claimed.
However, the company also believes 3G operators will not be looking for volume shipments of 3G handsets until sometime next year, and it would be 2005 before large numbers are being delivered.
Meanwhile, Sony Ericsson has announced an update to its handset product line, including new devices aimed at the low- and middle-range market, with a commitment to add more devices this year (see Sony Ericsson releases handset with Quick Share). The company was also keen to stress that all its new devices must be tied to applications and content.
“A key enabler will be MMS (multimedia messaging service),” said Wareby. “We plan to make this capability available throughout our range of terminals.”
