Twice - The consumer electronics industry magazine has detailed the following information about Sony's new luxury brand, Qualia.
"What do a $3,900 two-mega pixel digital camera, a $2,600 pair of headphones, a $1,900 handheld MiniDisc player and a $30,000 HDTV projector have in common? They are all part of Sony's ultra-high end Qualia line that was introduced by Sony here, on April 21. ":
The industry has long known about the launch of Qualia, but this still represents an interesting move for a firm that is in the midst of some turmoil. I previously wrote about "the Sony Shock", which was Sony's terrible earnings announcement that lead to the company announcing an entire new strategy. Part of this strategy was to lay off 20,000 people world wide, and move all the marketing and engineering functions within Sony Electronics from NJ to California. As part of this move the company has lost some top execs and is generally considered a little shaky at the moment.
Why does all this matter? While products in a luxury brand will carry better margins, this line of products will require a large investment in new complimentary assets. Sony will need to build out new distribution channels, new retail outlets, a new sales force, and a specialized customer care group. Launching all of these at such a time of turmoil will require flawless execution by those still at Sony. I hope the gamble pays off, but don't expect to find me paying $1,900 for a mini-disc player.
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