Sony Ericsson reports 'worse than expected' results

Sony Ericsson reports 'worse than expected' results

Sony Ericsson has reported handset shipments of 24.2 million in 2008 – a 21% dive from the same period in 2007. It has also announced plans for additional cost savings as market conditions slide.


The manufacturer reported its results for 2008 on 16 January.


It saw a 6% decrease in handset shipments between Q3 and Q4 last year, a drop of 25.7 million handsets to 24.2 million.


The drop was part of a ‘worse than expected’ downturn for the manufacturer, which also said operating losses before restructuring charges had more than halved to £188m, compared with £434m in Q4 2007.


Sales in Q4 increased by 4% compared with the previous quarter. Sony Ericsson said that foreign exchange fluctuations had had a positive impact on sales in total, but a large negative impact on costs of goods, which increased quarter on quarter, as well as year on year.


The manufacturer said it expected to make savings of up to £266m by the second half of 2009. Dick Komiyama, president of Sony Ericsson, warned that there will be ‘a continued deterioration in the market place in 2009, particularly in the first half.’


Sony Ericsson, the world’s third biggest manufacturer behind Nokia and Samsung, issued two profit warnings last year.



Written by Mobile Today
Mobile Today


Please wait...

Please write code to prove you're human