Sony Revives Walkman Brand in Bid to Take on Apple's iPod

Strategic Insights -

Sony, the troubled Japanese electronics giant, is attempting to revive its iconic Walkman brand in a bid to regain its position in the lucrative personal audio market. The company has unveiled four new mobile phones, including the first Walkman phone, which is equipped with a built-in music player. This move comes as Apple's iPod dominates the digital music player market, cornering 82% of the market last year.

Key Takeaways:

  • Sony has released four new mobile phones, one of which is the W800, the first Walkman phone with a built-in music player.
  • The W800 is expected to compete against rival music phones and standalone digital music players, including the iPod.
  • Sony's personal audio business is under pressure from the iPod boom, with the company aiming to turn things around with the launch of the Walkman mobile phone.
  • The Walkman brand alone is not enough to blow the iPod away, and the W800 will need to offer more compelling features to lure consumers.
  • Sony Ericsson's head, Ken Kutaragi, has acknowledged the company's failure to capitalize on the digital music scene due to concerns over piracy and content rights.
  • Sony's latest results show a significant decline in earnings, with a consolidated operating profit of 138.17 billion yen ($10.34 billion) for the third quarter, down 13% from the same period last year.
  • The company cut its group operating profit estimate for the year to 110 billion yen, down 31% from its previous forecast of 160 billion yen, and reduced its sales target by 2.7% to 7.15 trillion yen.

Statistics:

  • 82%: The market share of the digital music player market cornered by Apple's iPod last year (iSuppli).
  • 138.17 billion yen: Sony's consolidated operating profit for the third quarter, down 13% from the same period last year.
  • 2.15 trillion yen: Sony's sales for the third quarter, down 7.5% from the same period last year.
  • 110 billion yen: Sony's revised group operating profit estimate for the year, down 31% from its previous forecast of 160 billion yen.
  • 7.15 trillion yen: Sony's revised sales target for the year, down 2.7% from the original target.
  • 674 million: The number of handsets absorbed by the global mobile market last year (Gartner).
  • 512 megabytes: The capacity of the W800's memory card, which has only enough capacity for about 150 songs.

Sources:

  • "iSuppli: Apple's iPod Corners 82% of Digital Music Player Market" (Source: iSuppli)
  • "Sony Seeks to Regain Ground in Personal Audio Market" (Source: The Japan Times)
  • "Sony's W800 Walkman Phone to Compete Against iPod" (Source: BusinessWeek)
  • "Gartner: Global Mobile Market Absorbs 674 Million Handsets" (Source: Gartner)