Saturday, April 9, 2011

Sony Struggles With Quake-Related Parts Shortage

Sony Ericsson's Xperia Arc and Play devices are facing parts shortages, as the fallout from the quake and tsunami in Japan begins to ripple across the tech industry.

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The Japanese-Swedish joint venture also announced that its upcoming Neo handset has been delayed to summer as a result of Japan-related delays and shortages, as explained on its Italian Facebook page.
According to Sony Ericsson, supply chain disruptions resulting from the situation in Japan have affected the worldwide launch of the Neo. The model has already been released in some Asian markets, but won't be produced in significant quantities and be ready for wider distribution until later this year.
The Xperia Neo, Play and Arc may be among the first models concretely affected by the quake and tsunami that killed hundreds in Japan last month. The events brought many industries in the country, including technology, to slow or shut down, causing a domino effect on businesses worldwide that rely on Japan for parts. Analysts widely expect resulting delays and shortages of silicon chips, display panels and other components to impact handset and other device makers.
The shortage is actually not the first issue to plague the launch of the Xperia Play, which has been marketed by Sony Ericsson as the world's first PlayStation certified smartphone. Freight delays in China have already held up stock of the model, which was widely-anticipated to bring a whole gaming audience.
The impact could not have come at a more inconvenient time for Sony, which is trying to increase its market share in the smartphone market. The phones are the new flagship models for Sony, which has struggled to transition from camera and music phones to more robust smartphones. Now the world's fifth-largest handset maker, Sony has dumped Symbian, fired employees and cut back models to restructure its business for high-end devices.
Sony Ericsson is focusing on developing Android devices, hoping to achieve the same success that other struggling manufacturers, like Motorola, used to revitalize their businesses.

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