14 DAY TRIAL // Mobile phone manufacturer Sony Ericsson has announced its intention to produce low-cost color screen and music mobile phones in Chennai, India with the help of its existing outsourced manufacturing partners, Flextronics and Foxconn.
The announcement was made by Sony Ericsson's President Miles Flint and Communications and Information Technology Minister Thiru Dayanidhi Maran in Chennai.
According to the company, just about 10 million mobile phones, the equivalent of approximately 13 percent of all of the phones sold by Sony Ericsson in 2006, will be produced in India by 2009.
The handsets manufactured in India will come with basic features and an attractive price. Sony Ericsson also aims to offer local content and customized keypads.
Flint said "local manufacturing in India will result in improved cost efficiencies and enable us to offer attractive products at even more competitive price points."
Sony Ericsson, the world's fourth manufacturer is mostly known for its Walkman and Cybershot branded mobile phones. According to analysts, in order to become the third mobile phone manufacturer worldwide, Sony Ericsson will also have to focus on releasing low-cost phones that target lower income customers in the fast growing emerging markets.
With around 105 million GSM subscribers, India is one of the fastest growing mobile markets in the world. One of the main reasons why Nokia is holding on to the number one spot is its success in emerging markets.
"This is a reflection of India's potential as a manufacturing hub of international standards. The new facility will generate local employment opportunities in Chennai," the minister said.
It looks like Sony Ericsson has already started to produce more affordable low-end mobile phones, having recently released the W200, a Walkman phone that should start shipping at a significantly lower price than other Walkman handsets.