The Handset Opportunities Mike van der Wallen Corporate Vice President, Head of EMEA Sony Ericsson Mobile Communications November 21, 2002.

The Handset OpportunitiesThe Handset Opportunities

Mike van der WallenMike van der WallenCorporate Vice President,Corporate Vice President,Head of EMEA Sony EricssonHead of EMEA Sony EricssonMobile CommunicationsMobile Communications

November 21, 2002November 21, 2002

Evolution of consumer needsEvolution of consumer needs

Offerings to meet market demandsOfferings to meet market demands

The new roles of operators,The new roles of operators,handset suppliers and content partnershandset suppliers and content partners

Thousand faces of a mobile phoneThousand faces of a mobile phone

Market shiftDevelopment of consumer needsDevelopment of consumer needsOut of the box Out of the box

experienceexperienceEasy to useEasy to use

Share the Share the momentmoment

Get entertainedGet entertained

Be connectedBe connectedeverywhereeverywhere

Making life easierMaking life easier

PersonalisationPersonalisation

One single deviceOne single device

Market shiftMarket developmentMarket development

Consumer with his needs as theConsumer with his needs as thecentre pointcentre point

From technology push to consumer From technology push to consumer benefit pullbenefit pull

From voice centric to broad usage From voice centric to broad usage

The mobile device as your help in all The mobile device as your help in all situationssituations

Market shiftHandset market situationHandset market situation

Source: MDA 2002:2 Source: MDA 2002:2

87%

13%

New services and possibilitiesNew services and possibilitieswill drive the marketwill drive the market

Wide variety of suitable productsWide variety of suitable productsand right business model neededand right business model needed

Change the consumer propositionMobile Integrated Business ModelMobile Integrated Business Model

StimulateStimulate service take-up withservice take-up with exciting content exciting content

EnableEnable operators to deliver new operators to deliver newrevenue-generating applicationsrevenue-generating applications

LaunchLaunch integrated portfolio of integrated portfolio ofattractive and competitive productsattractive and competitive products

Change the consumer propositionFirst Phase – Market Development First Phase – Market Development

Product & application availability drives Product & application availability drives new user behaviournew user behaviour

Imaging

Imaging

EntertainmentEntertainmentConnectivity

Connectivity

Change the consumer propositionNext Phase – Market Penetration Next Phase – Market Penetration

Content & services growth drivesContent & services growth drivesdemand for bandwidthdemand for bandwidth and and product developmentproduct development

Change the consumer propositionOr to put it another way ….Or to put it another way ….

FirstFirst : : get consumers using cars get consumers using cars and appreciating the benefitsand appreciating the benefits

ThenThen : : respond to their demands for respond to their demands for faster cars and wider roadsfaster cars and wider roads

PlusPlus : : show the value of advancedshow the value of advancedtechnology (e.g. ABS brakes)technology (e.g. ABS brakes)

Change the consumer propositionPerspectives from another industry Perspectives from another industry

“Don’t worry – there’s a FedEx for that”

“Guaranteed delivery in 210 countries”

“647 aircraft and 45,000 vehicles”

Change the consumer propositionDriving New User Behaviour – Creating DemandDriving New User Behaviour – Creating Demand

Change the consumer propositionThree Applications Focus AreasThree Applications Focus Areas

En

able

rsE

nab

lers

Be

are

rsB

ea

rers

MMSMMS CameraCamera JavaJava BrowserBrowser DRMDRM BluetoothBluetooth

WAPWAP

GPRSGPRS

ImagingImaging EntertainmentEntertainment ConnectivityConnectivity

Two typical consumer scenariosTwo typical consumer scenarios

1. Share the moment - Instant Imaging1. Share the moment - Instant Imaging

Consumer proposition example: Consumer proposition example: Instant emotions available at any timeInstant emotions available at any time

Capture / Edit / SendCapture / Edit / Send MMSMMS

EmailEmail

WAPWAP

ViewView

StoreStore

Two typical consumer scenariosTwo typical consumer scenarios

2. Get entertained while waiting2. Get entertained while waiting

The consumer needs to The consumer needs to know about the opportunitiesknow about the opportunities

Show clear examplesShow clear examples

Demonstrate the USP in storeDemonstrate the USP in store

A new partnership modelStimulate consumer demandStimulate consumer demand

The handset supplier asThe handset supplier asappetizer and facilitatorappetizer and facilitator

Embedded Embedded GamesGamesGreat Great

gamesgamesavailableavailable

“out of the “out of the box”box”

DownloadableDownloadableGamesGames

A few more A few more “teasers” “teasers”

available from available from handset handset

supplier or supplier or operatoroperator

DownloadableDownloadableGamesGames

Premier games Premier games available from available from operator / SPoperator / SP

A new partnership modelImportance of partnershipsImportance of partnerships

Partnerships are crucial to stimulate consumer Partnerships are crucial to stimulate consumer uptakeuptake

Open standards, not limited to one solutionOpen standards, not limited to one solution

A new partnership modelContent partner optionsContent partner options

A new partnership model

Handsetsuppliers

ContentProviders

Prov

ide

cont

ent

Prov

ide

cont

ent Provide products

Provide products

3-partyWIN-WIN

agreement

3-partyWIN-WIN

agreement

Operators

HandsetSuppliers

ContentProviders

Operators

EntertainmentEntertainment

ConnectivityConnectivity

ImagingImaging

Drive the market togetherDrive the market together

Change the

Change the

consumer pro

position

consumer pro

position

The Handset OpportunitiesThe Handset Opportunities