An Apple Phone is No Slam-Dunk

An Apple phone is no slam-dunk The wireless world can be a harsh place. Just ask Sony, says Fortune's Stephanie Mehta.

By Stephanie N. Mehta, Fortune senior writer December 22 2006: 11:31 AM EST

NEW YORK (Fortune) -- A well-regarded computer and consumer-electronics maker plunges into the competitive wireless market with a combination music player/cell phone. The company's loyal users can barely wait to try the new gadget, and analysts predict the device will deliver on the long-promised marriage of music and mobility.

We're describing, of course, a phone Sony made for Japan's NTT DoCoMo, circa 2000. But you'd be forgiven for thinking we were talking about Apple's rumored wireless phone, which could be launched as early as next month.

It turns out that Sony's wireless experience is a cautionary tale for any consumer electronics maker - including Apple - trying to make the move into the cell phone business. Sony stumbled badly with its music player/phone, and in May 2001 DoCoMo recalled 40,000 of the handsets due to software glitches. (One phone reportedly shut down if the user was listening to music when the phone rang.)

Then, another Japanese operator recalled more than 500,000 Sony Internet-capable handsets. A few months later, Sony entered a joint venture with established telecom player Ericsson, in part, executives of the venture say, to gain much-needed wireless expertise. The alliance, Sony Ericsson, today is the No. 4 maker of wireless phones, after Nokia, Motorola and Samsung.

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