Warning issued that Sony Ericsson’s sales will fall 10%

Warning issued that Sony Ericsson’s sales will fall 10%

Sony Ericsson lost almost two-thirds of its share value in the past six months, and warned that its results next month will be anything but rosy.

The manufacturer suggested that unfavourable market conditions are hitting mid to high-end handset sales.

Sony Ericsson said it expects around a 45% drop in net income compared with the first quarter of 2007.

Bosses said first-quarter revenues will fall about 10% year-on-year. And, coupled with higher spending on research and development ahead of the introduction of several new phones later this year, operating margins will almost halve in the first quarter.

A slowing market looks partly to blame, with consumers taking longer to replace mobiles.

Komiyama said: ‘As discussed during our fourth quarter of 2007, the market is proving to be challenging.

’This has been more pronounced in the mid-high-end replacement sector of the market in Europe, where Sony Ericsson has stronger than average market share.’

Sony Ericsson plans to announce the first quarter results of 2008 in late April.

Written by Mobile Today
Mobile Today


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