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Sony Ericsson reports fourth consecutive quarterly loss for Q2

Written by James Delahunty (Google+) @ 17 Jul 2009 17:43 User comments (3)

Sony Ericsson reports fourth consecutive quarterly loss for Q2 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.

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3 user comments

118.7.2009 0:27

I think if they wanna really boost Sony Ericsson, they gotta be more like Nokia. Nokia has phones ranging from bargain bin to top of the line, and I believe with any Nokia you get more then what you paid for compared to others. My last phone, a Nokia 6275i, pretty much is the exact same as my friend's Sony Ericsson w810i in terms of specs, and mine was a little longer, thinner and heavier. I also think it looked nicer (black, chrome and gray is always nice). Anyways, I payed $100 or so less then he did, and they're virtually the same. So this is what I mean. Other companies offer even extremely similar phones to theirs at a lower cost. They gotta fix that. I think what Sony believes in general is that people no matter what the price is will buy their products because over the years they have built a name for themselves, being known as reliable and top of the line. This still works, but it worsens day by day as people are starting to realize that there are other companies out there that will get you the same stuff for a much better price.

This message has been edited since its posting. Latest edit was made on 18 Jul 2009 @ 0:30

218.7.2009 0:28

Ahh sh!t wrong button...

This message has been edited since its posting. Latest edit was made on 18 Jul 2009 @ 0:29

318.7.2009 6:29

They refuse to make the PSP phone! If they refuse to compete, to listen to (potential) customers, or to use the patents available to them...let them die!

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