Sony Ericsson continues to struggle

SonyEricsson is a prime example of another once iconic manufacturer, which is dramatically losing its market share. We have already discussed the portfolio of Sony Ericsson for the nearest future and its sales forecast. Last week gave another example how the company tries to save and maximize the profit, while the quality suffers.

In June SE unveiled an accessible touchscreen model Yendo, which had to enjoy good sales. It was created by Sagem to be sold as a Sony Ericsson model. Software was developed by SE, but somehow a promising model turned out to be the slowest handset I came across for years. Sony Ericsson criticized Sagem, but the French company explained that engineers of the former made them save on components and this outcome was inevitable. It is a typical situation for Sony Ericsson. Weak hardware required the genius of developers to turn the product into a successful one. Unsurprisingly, nothing of the kind happened and even Sony Ericsson decided not to sell Yendo under the circumstances.

According to the official information the phone will go on sale in February. I think the hardware components will have to be changed. I am not sure that Sony Ericsson found new developers to create such a miracle, which was impossible earlier. In February the market will not be impressed with this model despite a lower price. Once again money went down the drain. Even the scarce resources Sony Ericsson still has are not allocated wisely. Last week a gossip was spread in Asia that SE may sell its brand name and leave the market. I think it is premature, but in 2011 the company will suffer further shrinking of its market share and the only solution to save the jobs will be to sell the company. It is too early to say, but I think not many would like to buy it. In the absence of demand supply will not be provided.