Sony Ericsson Issues Second Profits Warning
| Author | Gordon Kelly |
| Published | 1st Jul 2008 |
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TrustedReviews NewslettersSony Ericsson has been here before but now things are getting even worse...
Following on from some truly horrendous Q1 results where profits crashed 48 per cent to just €133m, the handset giant has announced a profits warning (it's second of the year) and admitted it may struggle just to break even during Q2.
Blaming "continued market challenges" which it explains as flattening demand for mid to high-end handsets (particularly in Europe) combined with shipment delays - both seen partly as results of the economic downturn. Consequently, SE claims it will ship approximately 24m handsets in Q2 with an average selling price of €115 each, Q1 saw it sell 22.3m for an average of €121 apiece.
Completing a miserable picture for the company is news it has also slipped to fifth place in the mobile marketplace. Nokia, Samsung, Motorola and now LG sit above it.
Of course things could be worse, Motorola has forgotten what profitability is and the R&D of Sony Ericsson is still producing cutting edge devices like the Xperia X1 (above). On the other hand, whether enough people will be able/willing to splash out on it however is another matter entirely...
Link:
via Financial Times
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Williamn said on 1st July 2008
Aspegic said on 1st July 2008
[quote]Ericsson is still producing cutting edge devices like the Xperia X1[/quote]
'Producing' maybe, but not selling. The X1 was announced in Barcelona ea... more
Oliver Levett said on 1st July 2008
Aren't HTC doing the work for the X1 anyway? I know they're prepping the ROM as it contains HTC only apps (connection setup, HTCs own comm manager etc) and I think they&#... more
Luan Bach said on 2nd July 2008
SE has always been very poor at getting their high end phones to market. Remember the P990 anyone ? That took nearly 1.5 year from announcement to availability.
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Incredible... where did it all go wrong for Sony Ericsson? They had such a solid brand.