6/27/2008 5:46:00 PM
Sony Ericsson issues a profit warning for second quarter
Sony Ericsson has issued a profit warning, stating that its net sales and net income before tax for the second quarter will be negatively affected by the moderate demand for mid to high end handsets and the delay in the shipping of new products.
This comes after the handset manufacturer issued a similar warning before its first quarter results came out.
The company’s first quarter profits fell by 48% as a result of slower sales, higher R&D costs and component shortage, according to reports.
The handset manufacturer planned to ship 24 million handsets between April and June, each selling for an average of £91. During the first three months of the year, Sony Ericsson shipped 22.3 million phones with an average selling prices of £96.
There has been increasing demand for low end phones from developing markets as well as developed markets, such as the UK, that have been hit by the economic downturn.