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Sony Ericsson Predicts 390m Euro Loss As CEO Steps Down

Gordon Kelly

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Sony Ericsson Predicts 390m Euro Loss As CEO Steps Down

It used to be an easy choice: where do you not want to collect your long term pay check? Answer: Motorola. Now? Hmmmn, there's another contender...

Sony Ericsson has been having a horrendous time of things over the last 18 months. It has seen profits fall 48 per cent then crash 97 per cent and finally post its first loss - a hefty 25m euros in October and now it's really plummeting.

The company has revealed this time around it expects to lose between 340m euros and 390m euros in its impending quarter - a simply company shaking amount. Equally concerning it predicts demand for its handset sales will almost half to 14m units with the average selling price for these units just 120 euros - low range, and the poorest margins sector.

Consequently, it isn't surprising to also receive news that Sony Ericsson North American CEO Najmi Jarwala has "chosen to leave the company at the end of March to pursue other career opportunities."

"Under Najmi's leadership we have redefined our North American strategy, built operational excellence and strengthened our total presence considerably in this very important market," said brave faced Sony Ericsson global president Dick Komiyama. "We are sad to see him leave Sony Ericsson after more than three successful years, but at the same time we wish him all the best for his future."

Saddens me to say it, but I don't think he'll be the last out the door...

Links:

Sony Ericsson Sales Forecast Press Release

Jarwala Press Release

ChaosDefinesOrder

March 24, 2009, 4:31 pm

This sounds like it's almost certainly due to market saturation. People are more reluctant to splash out on a new handset so hold onto their existing one. As most people now have a mobile, there's less "first time buyers" and so the demand has dropped. To tempt people to buy, prices get dropped, which then results in less profits. This goes back and forth until losses occur...





This recession thingy has really royally ****ed up the world...

chancykid

March 24, 2009, 6:09 pm

Sony Ericsson is losing market share and it is not difficult to see why.





(1) Nokia N95. In assuming that such an expensive device could never have mass appeal, they seriously underestimated Nokia.





(2) Reluctance to merge Cybershot/Walkman brands. And buyers all over the world asking: why does my &#163200 walkman phone have a 2 megapixel camera?





(3) Misjudgement of market trends. No touchscreen phone for most of 2008. They enter the touchscreen market with the expensive and exclusive X1. Compare that with Nokia's budget friendly 5800.

Gordon394

March 24, 2009, 7:36 pm

And they are just some of the many missed opportunities... can anyone say 'Android'?


Sony Ericsson handsets have also looked virtually identical for the last 3/4 years which hardly helps the company image.

acgs1

March 24, 2009, 10:42 pm

Halves, not halfs, right?





I'm waiting for an Android phone here...

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