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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...
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 £200 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.
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