Se-lifestyle Blog

Few days back we heard a lot about the depressing results that Sony Ericsson had been facing, the quarterly results going haywire, company’s major strategies failing completely and topping them all, the highly stretched rumours of Sony and Ericsson splitting and coming out of joint ventures.

Today, on 17th April, 2009, at the official site, Sony Ericsson released the first quarter’s results that includes staggering losses the company has faced. With a look it becomes evident that Sales figure has decreased by a whopping 1000 Euros! Operating income since the fourth quarter of 2008 is running in minus!! Still the company, for reasons unknown, has kept the average selling price same.

Highlights, for the first quarter have been

• Income before taxes was a loss of Euro 358 million (excl. restructuring charges)
• Cost saving program progressing as planned and additional savings of Euro 400 million announced
• Launch of ‘Entertainment Unlimited’ consumer proposition and new generation of products well received by operator partners

Market share in the first quarter decreased and is now estimated to be around 6%, down two percentage points sequentially.

Sony Ericsson forecasts that the global handset market for 2009 will contract at least 10% from around 1,190 million units in 2008.

At Mobile World Congress in February 2009, if we remember, Sony Ericsson announced a new consumer proposition, called ‘Entertainment Unlimited’ (EU), to build on Sony Ericsson’s leadership in music, imaging, gaming, content services, and applications to deliver unlimited opportunities for consumers.  The release of Download Arena in Asia is a living example of that. The company also announced the first Entertainment Unlimited phone with the concept name ‘Idou’ to be launched in the second half of 2009. The next EU announcement will take place on 28 May.

Latest Buzz is : Sony Ericsson is about to dish out 2,000 pink slips in order to make up 358m Euros in losses.

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