CTIA Wireless 2008

Sony Ericsson Touts First 3G Phone at AT&T

| Apr 1, 2008 | Mobile Devices | Show Update

| Analyst: Brad Akyuz

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

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Event Summary

March 31, 2008 – Sony Ericsson announced the upcoming availability of the new Z750a, its first 3G/HSDPA handset designed for the U.S. market. The Z750a has a mirrored clamshell design boasting a hidden exterior display that lights up when in use, and features a 2.0 megapixel camera, multimedia player, full HTML browser and stereo Bluetooth. The phone will be available through AT&T stores and dealer outlets for $49 after a $100 mail-in rebate with new two-year service in early April.

Analytical Summary

• Current Perspective: Slightly positive on the new Sony Ericsson Z750a phone, because it is the company’s first 3G phone designed for the U.S. market and has an attractive case, feature list and price point. However, this does not change the fact that the vendor is extremely late to the 3G game in this market. Major rivals have long flooded AT&T shelves with HSDPA handsets that offer similar functionality at the same price points, and the Z750a’s $49 price tag and pretty mirrored design may not be enough to help it stand out on shelves at times when AT&T pushes other HSDPA devices such as the Samsung A737 and LG Trax for $30 and less.

• Vendor Importance: Very high to Sony Ericsson’s U.S. business unit, because the vendor has long been relying on a single mid-tier device (the W580i Walkman phone) along with an entry level phone or two for nearly all its sales in the U.S. market, thus any new device picked up by AT&T is crucial for its success. The fact that the new addition is an HSDPA device is equally important given the vendor’s lateness to market with 3G handsets and carrier promotion patterns which favor devices that can support multimedia services.

• Market Impact: Low on consumer handsets, because AT&T has already offered a wide spectrum of HSDPA-powered clamshell phones with matching functionality at similar if not more competitive price points for over 18 months. The Sony Ericsson Z750a is a very nice phone, but is not significantly differentiated.

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Current Perspective

Competitive Positives and Concerns

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