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...