CES 2008

Sony Ericsson Launches Three New Phones for the U.S.

| Jan 9, 2008 | Mobile Devices | Show Update

| Analyst: Avi Greengart

Current Perspective: Positive Vendor Importance: Very High Market Impact: Low/Moderate

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Event Summary

January 6, 2008 -- Sony Ericsson announced the launch of the Z555, W350, and W760 at CES. All are expected in the U.S. in Q1 (Z555) or Q2 (W350, W760). The W350 is a Walkman phone with a bar/flip design, the Z555 combines gesture control with a one-of-a-kind diamond design, and the W760 packs GPS, HSDPA, music, and motion controls into a slider.

Analytical Summary

• Current Perspective: Positive on Sony Ericsson’s three new phones, all of which should be competitive at their price points, because in combination with the W580i already on the market, Sony Ericsson is clearly seeking to claim ownership of the music category at AT&T for anyone who does not want to pay iPhone prices. The W350i is a particularly nice entry-level phone, with a hybrid bar/clamshell design that gives full access to music controls and is reminiscent of Ericsson phones from years past.

• Vendor Importance: Very high to Sony Ericsson’s U.S. operations, because the company has a very small footprint in this market – just a handful of phones at a single national carrier. To stay relevant in the U.S. market, Sony Ericsson needs each of its phones to be a hit.

• Market Impact: Low to moderate on the consumer handset market, because Sony Ericsson is poised to own the non-iPhone music market at AT&T. However, outside of AT&T, the handsets will have a relatively minor impact.

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Current Perspective

Competitive Positives and Concerns

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