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Sony Ericsson Makes Another Massive Loss

Gordon Kelly


Sony Ericsson Makes Another Massive Loss

Sony Ericsson has been doing sensible things recently. It has joined the universal charger initiative and agreed to drop Memory Stick Micro for microUSB - though long term improvements don't help short term woes...

Following up its 97 per cent profit crash this time last year and 358m euro loss in Q1 the monster conglomerate announced it has managed to lose 283m euros in Q2. This breakdown every bit as depressing as you might imagine with the a 213m euro loss in net income comparing to a 6m euro profit in Q2 2008 making that 97 per cent profit fall (and talk in terms of profits at all) look rosy by comparison.

Perhaps more worryingly it reports average handset prices went up six euros to 112 euros and it shipped just 13.8m of them in Q2 2009 compared to 24.4m in the year ago quarter - a horrendous 44 per cent drop off. On the bright side (ish) the 2,000+ jobs it has cut since Q1 are expected to help stabilise the company over time. Sony Ericsson also retains a net cash position of 965m euros despite predicting a 10 per cent contraction in the global handset market this year.

"As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson," admitted group CEO president Dick Komiyama. "Our focus remains on bringing the company back to profitability and growth as quickly as possible, and our performance is starting to improve due to our cost reduction activities. The new product portfolio that integrates communications, entertainment and social media applications should contribute to healthier topline development when shipments start later this year. We remain confident that the actions we are taking will further improve our financial situation and strengthen Sony Ericsson's competitiveness."

Komiyama speaks a lot of sense but I'm not convinced given what I've seen of hero products the Satio Aino and Yari that the company has fully learnt the lesson of software over hardware. It needs to soon however since another CEO bleeding heart story this time next year simply won't wash...


Press Release


July 16, 2009, 6:29 pm

Maybe they should stop making "Experiment" phone and make proper ones


July 16, 2009, 6:34 pm

How about their XPERIA phone based on Android:

Some high resolution renders: http://androidguys.com/?p=5996

Interface video: http://androidguys.com/?p=5953


July 16, 2009, 7:27 pm

I think S-E should release some damn phones for once instead of talking about them for months on end. As much as I dislike Apple, they do know how to launch a product better than other CE/media companies. At the end of the speech the new one is available to buy on the store, so why can't S-E take a leaf out of that book. When they announced Aino and renamed Idou to Satio at the MWC it should have been in storerooms waiting to be put on shelves. Instead we get a 6 month wait while Samsung and the competition announce and release superior phones.

Not that it looks bad, the previews going around atm look very positive, and Satio looks like a device that could be a real winner. Personally I'll be waiting for the inevitable follow up Satio mk.II or whatever with OLED multi-touch and LTE... :D


July 16, 2009, 9:40 pm

That is what you get when you sit on your hands. It feels like Sony Ericsson stopped developing their product line five years age. Even when they have a world of opportunity in front of them they refuse to innovate. Why not build in some Playstaion/Walkman/Camera goodness into their phones. Convergence! We know that Sony does all of these three things brilliantly by themselves.

Instead they make different lines for everything, ending up with a silly portfolio. I wonder if their engeneers thought "surely nobody wants to both take pictures AND listen to msuic!".

I know it is not a quite fair to their most recent products, but that doesn't really help Q2 does it?

Oh, and by the way. Can't wait for their Android phone! Might make me come back to the conglomerate, I still have fond memories of my Ericsson T28 after all.

Brian ONeill

July 16, 2009, 10:07 pm

That is a lot of my money to lose, have they checked down behind the sofa?

But seriously, sony these days is a basket case it has completly lost the plot in most of its product categories.

Dean 1

July 16, 2009, 10:59 pm

They have agreed to "drop Memory Stick Micro for microUSB"?

I agree, it's about time they released (and then promoted) one of these new flagship phones instead of just talking about them for months on end.


July 17, 2009, 12:29 am

I think Sony Ericsson spent too long gleefully watching the demise of Motorola and thought that couldn't happen to them, and that market share would easily fall to them. I agree with Jesper in that Sony Ericsson phones have been stagnated for a number of years now. SE are finally seeing what every tech firm knows,

I've no sympathy since they were warned about Apple entering the market, and had chances to innovate long before.

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