SE’s new chap at the top, Bert Nordberg, is increasingly looking to be someone that is going to do some *** kicking at Sony Ericsson. Why do I say this? Well let’s look at an interview he recently gave to a Swedish website. In the interview Mr Nordberg made some comments that should give Sony Ericsson’s beleaguered customers a little bit of hope that we may at last, at long last, be seeing the company turn in the right direction.
For one Mr Nordberg wants to see Sony Ericsson return to profitability by next year. That’s a bold statement to make considering the losses the company has sustained over the past year ad the fact that the global economic recovery is still in its early days. Indeed the website conducting the interview made a point to note that most analysts are still looking at 2011 before SE can once again turn a profit. At any rate it’s a sign that Mr Nordberg is aiming high at least.
Next on his list is to cut the number of managers at Sony Ericsson. He says he wants a ‘flatter’ structure, most likely meaning a lot less bureaucracy (which if you’ve ever dealt with Sony Ericsson you will know can be headache inducing). It’s also about economics though, reducing the number of managers will save Sony Ericsson money. As you may recall Sony Ericsson has already implemented job cuts, with more than 2,000 jobs already having gone. It’s never a good thing when someone loses their job of course, but hopefully these measures see the company turn a profit again all the sooner and enable them to start creating jobs again.
Mr Nordberg saved the best for last though when he talked about the main road to profitability …better and more expensive handsets! His actual statement being:
"We should spend more on advanced phones and raise the average selling price … We will not chase market share by selling 25 dollar phones in India"
It almost brings a tear to your eye. It actually sounds like the Sony Ericsson of old again. It looks like the big bold handsets that enter the market to kick *** are coming back thanks to a CEO who, as I said, looks to be kicking some *** too with his call for “swift and decisive action”.