Sony Ericsson’s Xperia smartphone arrives in U.S. for $800, sans carrier distribution

Sony Ericsson Mobile Communications announced its high-end, touchscreen smartphone, the Xperia X1, will be available to U.S. shoppers in time for the holiday season – but the device will carry the staggering price tag of $800.
The announcement appears to reflect Sony Ericsson’s inability to score a carrier deal for the Xperia, at least in time for the critical fourth quarter holiday shopping season. Instead, the company is selling the handset through its Web site, www.sonystyle.com, starting Nov. 13.
Thus, the phone will not enjoy the carrier distribution, marketing or subsidies generally required for high-volume sales.
A Sony Ericsson representative said the move allows users to customize the device as they see fit, with whatever carrier and plan they want. However, the representative said the company is always open to working directly with carriers, but can’t disclose discussions around specific phones or carriers.
Sony Ericsson is not alone in going straight to consumers, without the aid from a carrier; Nokia Corp. and others have employed similar tactics. But those in the industry agree that such sales strategies play second fiddle to the massive market weight and sometimes aggressive subsidies that carriers can employ when selling a phone.
Further, Sony Ericsson enters a crowded field, and some of those devices directly competing with the Xperia X1 are fully four times cheaper. AT&T Mobility this summer set the bar at $200 with Apple Inc.’s 8GB iPhone 3G – a price that reportedly cost the carrier $900 million in subsidies during the third quarter.
Nonetheless, Sony Ericsson offered a silver lining for the X1: “This premium device will be sold unlocked . giving consumers the freedom to choose their own mobile operator and data plan.”
Sony Ericsson’s Xperia features a unique panel user interface, Microsoft Corp.’s Windows Mobile 6.1 Professional operating system, Wi-Fi and support for UMTS/HSDPA/HSUPA 850/1900/2100 MHz networks.
Despite carriers’ apparent distaste for the Xperia X1, Sony Ericsson continues to enjoy relationships with GSM operators AT&T Mobility and T-Mobile USA Inc. Indeed, AT&T Mobility lists the Sony Ericsson W350 as one of its “top selling cellphones.”
Article modified Nov. 13 to include comments from Sony Ericsson representative.