Sony Ericsson sees higher prices in emerging mkts

By Lucas van Grinsven, European Technology Correspondent

PARIS (Reuters) - Sony Ericsson (6758.T: Quote, Profile, Research, Stock Buzz)(ERICb.ST: Quote, Profile, Research, Stock Buzz) said consumers in emerging markets are starting to replace their first, cheap phones, creating an opportunity for more expensive models from the world's fourth-largest cellphone maker.

"What we are seeing is definitely that in so-called emerging markets...there are replacement cycles already happening fairly quickly," Sony Ericsson head Miles Flint said at the Reuters Global Technology, Media and Telecoms Summit in Paris on Wednesday.

"People in emerging markets don't just want cheap phones, they want good phones," he added.

Flint said the Sony Ericsson does not compete much in the ultra low-end of the market of $20 to $30 handsets, a segment dominated by Finnish rival Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz).

"We have been consistently saying that we are not intending to go to the ultra low parts of the market where I think one vendor has a very strong cost position," Flint said.

Annual handset sales in developing markets have grown three fold since 2002, compared to 62 percent growth in developed countries, according to Strategy Analytics.

Some 65 percent of all handsets made this year will be sold in emerging markets.

Asked if Sony Ericsson, the fastest growing of the top five handset makers, was benefiting extra from troubles at Motorola (MOT.N: Quote, Profile, Research, Stock Buzz), he said: "I think it's a little bit early to tell."  Continued...