Sony Ericsson hit over high-end handset flops

Sony Ericsson hit over high-end handset flops

Sony Ericsson issued its second profits warning last week, following the first one issued before the first quarter results earlier this year.

The warning comes despite a solid performance in the UK, which has been one of the only markets that has not seen a marked dip in sales.

It suggests that the manufacturer is still not out of the woods after a tough 2007, but senior buyers from operators and retailers are confident that new CEO Dick Komiyama can turn the corner for Sony Ericsson.

The K850i and W910i (pictured) failed to scale the heights of previous flagship Cyber-shot and Walkman handsets.

The company’s first quarter profits fell by 48% as a result of slower sales, higher R&D costs and component shortages, according to reports.

Sony Ericsson 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 price of £96.

One operator buyer said: ‘They’ve had organic growth for the last few years at the expense of Nokia, and

Nokia really came back last year with Nseries, and that’s what really hurt Sony Ericsson.’

 

Written by Mobile Today
Mobile Today

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