Sony Phones In a Strategy

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Apple (Nasdaq: AAPL) has the iPhone. Research In Motion (Nasdaq: RIMM) has the BlackBerry. Palm (Nasdaq: PALM) has the Pre. Nokia (NYSE: NOK) has the N-series. Even Microsoft (Nasdaq: MSFT) wants in on the smartphone market. Is there really room for another competitor?

Sony (NYSE: SNE) apparently thinks so. Japan's Nikkei Business Daily reported over the weekend that the electronics maker was planning a cellphone/game console hybrid. News.com later reported that Sony wants to make its popular PSP handheld the basis of a new smartphone.

At least Sony isn't afraid to zig as others zag. Apple has done well by avoiding convergence, keeping the iPhone and iPod lines separate. As a result, the phone-free iPod Touch has grown into a popular platform for portable gaming. Sony should see that as a threat.

But is creating a PSP Phone the right response? Possibly. Apple may prefer distinct product lines, but there are other areas in which entertainment devices are converging. Consider the Xbox 360, a game console that also plays and downloads movies.

Yet this may be a poor comparison. Smartphones aren't toys -- they're designed for serious business. Even the iPhone, originally assailed as a high-priced toy, is winning corporate customers. An estimated 12% who bought the new iPhone 3G S switched from the business-user-friendly Blackberry.

A PSP Phone may not need to attract business adopters, especially if teens with disposable income like the gadget. But that means convincing them Sony is as cool a supplier as Apple and Nokia, among others.

Good luck with that, Sony.

Brrrrrring! It's related Foolishness calling:

• This isn't the first time Sony has taken a swing at Apple.
• Sony wants a shot at TiVo, too.
• This man has the authority, and the budget, to forever change telecom.