7/22/2009 12:59:00 PM
Nokia and Sony Ericsson both report sales decline in quarter two
Sony Ericsson and Nokia reported a continued decline for the second quarter of 2009, but remained optimistic that smartphones would lift them back into profits this year.
Both manufacturers reported a fall in sales and handset shipments, forcing them to reiterate that the market for mobile phones would continue to shrink as consumer demand slides.
Nokia, the number one manufacturer, reported a decline in profits of 66% to £326m and a 25% decline in sales to £8.5bn, but it also reported an increase in market share and the number of smartphones shipped.
The manufacturer managed to grow its market share sequentially to 38%, compared with 37% in Q1. It also shipped 41 million smartphones – up from 37.1 million in Q1 2008 and 36 million in the first quarter of 2009.
Sony Ericsson, the fifth largest manufacturer, reported losses of £25m, representing its fourth consecutive quarter of losses.
The manufacturer suffered in most areas of the business, including shipping, which fell by 43% year on year to 13 million handsets.
Despite the profit losses, both companies claimed they were optimistic for
a recovery. Sony Ericsson said it will continue to focus on its entertainment portfolio with products such as the W995. Meanwhile, Nokia said it will use the Nseries and Eseries devices to grow in the smartphone market.
However, the CEOs of both manufacturers confirmed predictions that the market would continue to shrink.
Sony Ericsson president Dick Komiyama (pictured, far left) said: ‘As expected, Q2 was challenging and we still believe the remainder of 2009 will be difficult for Sony Ericsson.’
Nokia CEO Olli-Pekka Kallasvuo (pictured, near left) said: ‘Competition remains intense, but demand in the overall mobile device market appears to be bottoming out. As before, we are continuing to tightly manage our operating expenses.’