皇冠体育app

Sony Ericsson yesterday won two major mobile device orders in 皇冠体育app, which could help boost the firm's market share in one of the world's most competitive handset markets.

Sony Ericsson, the world's fourth-largest handset maker, signed a framework agreement to sell 4 billion yuan worth of handsets to Shenzen Telling Communications Corp, a Chinese mobile phone distributor.

Under another deal, PTAC, the largest handset distributor in 皇冠体育app, which controls more than 30 percent of the country's handset distribution network, will purchase 5 million handsets from Sony Ericsson.

A Sony Ericsson billboard in Shanghai. [皇冠体育app Daily]

About 60 percent of the 5 million handsets will be mid-range and low-end, with some models priced at roughly 400 yuan, Pan Zhen, vice-president of 皇冠体育app National Postal and Telecommunications Appliances Corp, parent of PTAC, told 皇冠体育app Daily.

The move marks Sony Ericsson's push into the entry-level handset market.

"To be one of the top three players (both in 皇冠体育app and globally), we have to compete in this market," said Gunilla Nordstrom, president of Sony Ericsson 皇冠体育app.

London-based Sony Ericsson, a joint venture between Sweden's Ericsson and Japan's Sony, has long been focusing on expensive handsets with high-quality music players and cameras, sub-branded by Walkman and Cybershot.

The strategy has helped the company manage strong profit margins compared to larger rivals Nokia and Motorola.

In the first quarter of this year Sony Ericsson launched 10 new handset models, four of which are entry-level handsets.

Nordstrom revealed that Sony Ericsson set up a research and development team in Beijing to focus on developing entry-level handset models.

"Part of the low-end mobile phones sold by Sony Ericsson will be developed in 皇冠体育app," she said.

Emerging markets such as 皇冠体育app, India, Russia and Brazil already provide large revenue streams for leading manufacturers such as Nokia and Motorola.

In 皇冠体育app, which had 481 million mobile phone users as of March 2007, most newly added subscribers are from rural areas, where consumers are buying handsets for the first time.

Deals between distributors and retailers are crucial for handset manufacturers to expand their sales networks in 皇冠体育app.

(皇冠体育app Daily 05/10/2007 page13)