Sony launches new phone to tap China's premium market

Sony on Tuesday launched its new flagship Android smart phone, "The Xperia", for Chinese users. Featuring a dynamic range image sensor and a function to share pictures and videos from your mobile to your home cinema, Sony is hoping to tap into the lucrative high-end Chinese consumer segment.

Laura Luo takes a look at the new gadget, as well as the challenges to break into the highly competitive Chinese smartphone arena.

A slim-7.99-minimetre body, subtly rounded edges, smooth, reflective surfaces on all sides. This is the newest member of the Sony smart phone family: Xperia ZL 36h or Super phone. And it's not just a sexy name. Sony has put its TV techniques into this small gadget, gaming for a big prize.

Magnus Ahlgvist, President of Sony Mobile Communications, Greater China, said, "2013 will be a big year for us. We have invested heavily a lot into operator relationships and expand retail..."

Sony Mobile has sold over 8.8 million smart phones in Q3 2012, ranking No.3 in global sales volumes, but its market share in China only ranked number 7 or 8.

Laura Luo, Beijing , said, "With a premium recommended retail price, Sony super phone is hoping to stack up against Apple's iPhone and Samsung's Galaxy S, which has just announced top position in its global sales. The competition in China will be an interesting one in 2013."

Liu Dalong, analyst of Iresearch, said, "Sony's brand influence is not as strong as Samsung or Apple, and its reputation in the Chinese market is not as good as ZTE or Huawei. However, they have advantages in TV technology and design. If they master their position well, they stand a good chance to tap into the high-end market."

Liu says China's smart phone sales are expected to reach 160 million yuan this year, and phones with big screens and cheaper prices will mark the new trend.

Liu Dalong said, "Low end smart phones with a price of less than 1,000 yuan have seen strong growth, it's the most important component of the market now. Local brands such as Coolpad or Lenovo know what Chinese customers want, and their quality and prices are in a reasonable range. Bigger screens and lower prices will be the trend here."

Samsung has obviously bet on the right direction of the market, its global market share increased from just 3.3 percent in 2009 to 31.3 percent in third quarter 2012. Meanwhile, Apple's share increased at a much slower pace.