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The Sony Xperia E1 smartphone costs 165,000 won. Sony is the first handset producer to introduce a mobile with a price below 200,000 won, officials said.
The move is aimed at accelerating efforts to diversify its product portfolio ― both high-end and mid-tier ― to meet growing demand for less-pricey mobile devices in Korea, which is dominated by Samsung and LG Electronics.
By unloading unprofitable business units, Sony Korea is shifting its focus on the mobile business as the Japanese consumer electronics giant has advantages in sensors and other software content ― two important deciding factors.
By promoting the "One Sony" business strategy, it's been strengthening business ties with the nation's top mobile carrier ― SK Telecom ― to ship more of its budget mobiles.
While the suggested retail price is appealing, specifications are competitive from hardware to software.
E1 has a four-inch screen and is powered by a Qualcomm MSM 8210 dual-core processor. The device features four-megabyte storage capacity and is equipped with a three-megapixel camera. It has Google Android software.
It offers "xLOUD" sound enhancement technology and an up to 100 dB speaker, so it is also well used as a portable music player.
Just like the Sony Xperia line-up, the body of the handset is slick and shiny. It has Sony's trademark omni-balance power button.
Sony has been setting in motion a successful comeback to the smartphone market with the Xperia Z1 and Z2 in Korea.
Sony is one of the few survivors in the Korean market as a foreign handset manufacturer. Taiwan's HTC and Motorola exited Korea hit by higher demands from Koreans for hardware specifications, competitive pricing and improved after-sales service. Korea is regarded as a tomb for foreign handset makers, according to officials and experts.