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Sony Ericsson Sees Profits Crash 97% In Q2

Gordon Kelly

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Sony Ericsson Sees Profits Crash 97% In Q2

What was I just saying...

Yep, mobile phone companies aren't having the best of it. A combination of market saturation and the credit crunch are hitting their upgrade dependent business models and now Sony Ericsson has just turned in some particularly nasty Q2 figures.

Having seen profits fall 49 per cent in Q1 the super conglomerate has watched in horror as profits crashed 97 per cent in the follow up quarter. As you would expect poor sales in the more lucrative mid and high-end product range were blamed and sadly bearing the brunt are 2,000 employees who will now be laid off around the globe.

SE didn't say exactly what countries or sectors of the business would be most badly hit by the redundancies but it did say its year ago profit of €220m was down to just €6m while shipments fell two per cent to 24.4m against the same period. Net revenue also suffered dropping 9.4 per cent to €2.82bn.

The Q1 results saw SE slip to fifth place globally amongst handset manufacturers behind LG and now hopes of retaking it must seem a distant pipe dream at present. At least Sony Ericsson has the much hyped XPERIA X1 (above) launching in Q3 to save it.

What was that model again? Oh yes, an ultra high-end smartphone...

Link:

Q2 Press Release

Aloonatic

July 21, 2008, 4:24 pm

Can anyone be surprised to hear that Sony Ericsson are struggling?





Credit crunch or no, they would be having trouble as their product range just isn't there.





I was a loyal SE user until my last upgrade a while ago.





I was going to go from a k800i to k850i but luckily a friend had one and I tried it out. So I saw how truly awful the buttons were on that thing. Seriously, who's idea was that?





In the end I waited a while (putting up with the broken/useless joy stick) for new products to come along but couldn't wait any longer and went for a N95 8GB.





There was nothing that Sony had to offer at the time that was anywhere near it.





Having just upgraded to the firm ware with the auto rotation like the iPhone (but not as pretty) I am quite happy with my choice now and I'm not sure if I'll be going back for a while.

Peter

July 21, 2008, 4:50 pm

Maybe i'm getting old... But why don't manufacturers limit themselves to 5 handsets and concentrate on those. Looking at SE / Nokia websites my eyes just glaze over....





SE had a good run from the T610 through to the K800/K810 or W810i. And it seems they have lost focus.

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