A Phone by Any Other Name

March 1, 2006 -- -- High atop the Manhattan skyline, on the 35th floor of the Sony America Corporate offices, a virtual flash of innovation was introduced into the mobile phone world. Or was it a bold marketing pronouncement meant to shake up the handset marketplace for the coming year?

Sony Ericsson unveiled its ever-expanding product grid for the next 12 months, including a phone integrated with a Cybershot 3.2-megapixel camera that may be the push the fledgling handset maker needs to be considered a major player in the billion-dollar personal communications business.

Sony Ericsson isn't exactly looking for handouts after selling more than 30 million devices worldwide in 2005. But the 5,000-employee team has ranked fifth in the ultra-competitive business with only 7 percent of sales. Nokia is No. 1 worldwide and Motorola is No. 1 in the United States.

In 2001, Sony and Ericsson joined forces in a venture to create cell phones for a growing marketplace.

For the last four years, the company has received numerous accolades for designing stunning handsets. It has had limited success when users seemed to lust after all the bells, whistles and innovations, but opted for the lower-end models that were available for a lower price -- the ones not necessarily produced by Sony Ericsson.

Making it up in volume worked for the cell phone manufacturers until the introduction of the hugely popular Razr phone by Motorola.

More than 12 million of the must-have phones have been sold, even at prices upward of $400. The phone has very few premium features beyond an average camera and, at times, it is offered in a smattering of limited-edition colors.

This may explain the success Sony Ericsson began to have in the final few months last year with the introduction of its multimedia-friendly, Walkman-branded phones.