James Delahunty
17 Jul 2009 17:43
Sony Ericsson has posted a quarterly loss of €213 million ($300 million) for Q2 2009, it's fourth consecutive quarterly loss as the global recession continues to pound the mobile handset market. Units shipped in the quarter were 13.8 million, a decrease of 43% year-on-year and a sequential decrease of 5 percent. Sales for the quarter were €1.68 billion, a year-on-year decrease of 40 percent, from €2.8 billion in Q2 2008.
"As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson. 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," said Dick Komiyama, President, Sony Ericsson.
He continued: "We remain confident that the actions we are taking will further improve our financial situation and strengthen Sony Ericsson's competitiveness." EQ Bank analyst Jari Honko commented that the report shows Sony Ericsson, a joint-venture of LM Ericsson and Sony Corp., is in deep trouble. "My future outlook for the company is pretty dark," he said. "I haven't seen any magical trick that could improve Sony Ericsson's position."
Some speculation has spread through the media that Sony Ericsson may soon require a cash injection, which may alter the ownership structure of the handset maker.