Sony Ericsson targets low-cost Indian market

After its phenomenal rise in the mid-range mobile market, Sony Ericsson (SE) is turning its attention to the low cost sector in India where it has signed an agreement to make entry-level music phones.

The handsets will use low-cost colour screens and will be manufactured in partnership with its outsourcing partners Flextronics and Foxconn in India, Sony Ericsson said in a statement.

The firm said: “In addition to competitive pricing, these phones will offer customised features for the Indian market, such as local content and customised keypads.”

SE says the move is part of a long term strategic plan to increase its presence in “important growth markets. With a GSM subscriber base of 105.4 million, India is one of the fastest growing mobile markets in the world, and forms a priority growth market for Sony Ericsson worldwide”.

SE has made huge gains in performance across the board but analysts have suggested it needs to keep a close eye on the emerging market sector where Nokia and Motorola both have products. In January, SE reported it had shipped 26 million units, up more than 60 per cent on the year before. The company pointed to its success with its Cyber-shot and walkman designs which helped bolster both the company’s performance and its image.

Miles Flint, president of Sony Ericsson said: “Local manufacturing in India will result in improved cost efficiencies and enable us to offer attractive products at even more competitive price points.”