Sony Ericsson: steep drop in 2Q profit

July 18, 2008 07:38 EST

Mobile phone maker Sony Ericsson is reporting a steep 97 percent drop in second-quarter earnings as tougher market conditions hurt its sales.

Net profit at the joint venture of Tokyo-based Sony Corp. and Stockholm-based LM Ericsson fell to 6 million euros ($9.5 million) in the quarter from 220 million euros in the same period a year ago.

Sales were down about 9 percent to 2.8 billion euros ($4.4 million).

The joint venture had warned before Friday's report that it expected to just break even because of tougher market conditions.

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For those who didnt know the actual positions of the TOP 5

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Note: its based on 3Q 2007

UPDATES : 1Q 2008
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BRAND - Million units sold - Market Share

Nokia - 115.2m- 39.1%
Samsung - 42.4m - 14.4%
Motorola's - 29.9m - 10.2%
LG - 23.6m - 8%
Sony Ericsson - 22.1m - 7.5%

Source

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UPDATED 01/08/08

Motorola posts Q2 financials, maintains #3 market share position

News by Michael Oryl on Thursday July 31, 2008.

Today Motorola posted its Q2 2008 earnings and sales results. In spite of the fact that the sales figures for its Mobile Devices unit are down 22 percent from Q2 of 2007, to US$3.3 billion, and that it reported a larger operating loss of $346 million, the company has managed to hold on to its #3 market share position in the cell phone industry. With a better than expected 28.1 million phones shipped in the second quarter, Motorola has just barely managed to stay ahead of South Korean rival LG, which recently posted Q2 sales figures of 27.7 million units.

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Mobile News International reports that Sony Ericsson has increased its UK share by 5 percent, to 25 percent, for the fourth week running. This makes Sony Ericsson the second largest handset manufacturer in the United Kingdom.

The five percent gain comes mainly from launch of the C902, which we’ve just published a review of, on contract, as well as cheaper phones, such as W350 and W380, on prepay. In addition to this, Sony Ericsson’s W580 and W910 are selling well on cheaper contracts.

According to Mobile News International’s sources, Sony Ericsson expanded too quickly, resulting in the release of many unneccessary phones. Last year, Sony Ericsson announced 15 phones more than the previous year. Sources claim each phone require over 100 extra engineering and marketing staff. This sounds like one of the most reasonable reasons as to why Sony Ericsson is looking to cut 2,000 employees.

We wouldn’t be surprised to see Sony Ericsson stepping up its game later this year. Sony Ericsson’s president, Hideki Komiyama, has officially said there’ll still be financial problems to a certain degree in Q3 this year, but Q4 should be different. Especially with the launch of such phones as C905, W595 and W902.

So shocking news....
TS, where u get the source from?

erksss?...that's a lot...
is it because of the China brands or imitation phone into the market?...

china fon really lookalike the ori phone..

ah..and this is how nokia wins it all

haha...nokia suffer for imitation product more than SE...but they still can survive..
so, the reason behind these losses perhaps due to their phone line-up itself..
they better start planning to produce better specs phone...hope upcoming c905 can help them, X1 might be js like p990..came out very late due to software probs..

its very good a lesson to SE to let them know what consumer think, not to the brand but to the features

ya..SE digging their own graves with their proud K850i
hope C905 will not deeper their grave hole so easily awakening after dead

most of the sony ericsson phones have the same old UI and functions

Same UI is sick, no gound breaking features is a lose, same old functions with minor design change is sick as well. Overall SE = SICK!

Wow, dropped 97%, that's simply unbelievable...

i dont think that chapulak china brand can affect that much..



not actually..its LG and Samsung slowly eating up their market share..but nokia still first though..

world market share has a big change..

1. nokia
2. samsung
3. motorola
4. Sony E
5. LG



yeah..endusers dont like to stick to the same thing all the time. like we dont like to eat the same thing too often..
its been hard for them too..trying to catch endusers preference..once they got the idea..but it wouldnt last also...
thus..some models dont sell..

btw..due to that..they need to cut 2000 jobs..



Unbelievable?..............

Believe it..

Ripleys Believe it or not

this is shocking...thought that SE only 2nd best after nokia...now plunging down so deep...
well actually me also getting bored with SE interface, unless they change to produce more OS based phones, my next phone gonna be iPhone or Nokia N-series or Samsung Omnia...

The reason is that Nokia phone is "not much of " waiting, announce and you can go buy

Meantime, SE phone is really usually 1Q behind, LG and Samsung both are dare to release multiple phone, not so much on mid-range, you can see the price for these two brand,

It is sad, I hope that some is Moto fans, remember those Startac era, can save it for the good,

SE, may be MSE? lolz

Do u mean K850i is a failure product?

yeah,China phone also make the phone markets more competitive.
with their analog TV features + cheap + bigger screen make it a good choices
"what a waste of money if u can get only 1 SE phone with rm1000, whereby u can get 2 china phone with the same price tag".
most ppl think like this especially who never bother about mega pixel or xenon flash..
even this China phone already function rich..
if ppl who follow the phone technology, they will choose this SE or Nokia or LG or other branded phone,,as long as any phone that suite them..
if not,they just choose that chine phone,what else?TV?its free....3G?not all ppl know n use that..
for me China phone itself is killing others branded phone market.
but this is good for consumers that dun wan to spend thousands for rich function phone

for my concern..yes,at the moment K850i is the failure product..u can see more this K850i users claim BROD and many problem thing.
u can survey in other forum phone to see it clear..
This is because is SE itself never protect their product..maybe now they still finding the best solution for this misery...or maybe they just piss off this problem and concentrating with new models.
in malay says" SE ni buat kerja hanya melepaskan batuk ditangga"

I think most of SE phones also like that. SE never wan release new firmware update also. After releasing few firmwares, then it stops to release updates for that particular SE phone... Haiz...

iianm..SE NEVER reach 2nd..its always struggling between 4th or 5th with LG and Motorola last time..

so sad...SE lose to the other 2 company that makes washing machines...

Those 2 companies are LG and Samsung ah?

yeah..maybe they use the washing machine marketing plan..

look like this news is real, 2000 jobs to go,

http://news.yahoo.com/s/ap/20080718/ap_on_..._ericsson_earns

Wow...many people lose jobs...

ouch...looks like i am going 2 jump ship back 2 nokia again as some says SE is getting more and boring with their phone line up which was so pathetic which their crappy 2MP phone with the same old shape and design

owh?...Samsung and Motorola beat SE?...



wonder if SE would be will to produce something like the one for Japan market...
design and function really attract the users...or is it just Japanese liking only?...

quick..JUMP..SE is sinking...



what models u refering to?

meaning...most phones for Japan market is much nicer compared for SE model for world market...

I personally felt that SE company doesn't and didn't focus on what users want la. They keep pushing out new phones, which have quite the similar functions of their predecessors. Seriously I think that they focus on the wrong thing too, what is the point of keeping up the Megapixel(camera) race? Who cares how many megapixel my handphone have? And the "new" walkman phone series, I don't need to mention the models, actually I can't remember them, a lot of them. Same same same old thing. Boring lah brother.
SE! Wake up pls!

theres always a point of keeping up the Megapixels..
if they dont keep up..now maybe u still using a 1.3 or 2 megapixel with no AF phone..
since they have their Cybershot line..i think its a necessity since every other brand are having the megapixel race..as a company which also produce camera..u think they just stand there and watch?

I would say, if I would like to have so much a megapixel, why go for a high MP handphone? Why not just head straight to get a camera? For me, 2 or 3 MP for a handphone is quite sufficient. Okay, the other point, you agree with those Walkman phones? They keep producing the same features!

I myself using a SE phone K750, its a good phone though.

Myself have change back to Nokia N-Series. Is so much better, you have the best of both world!

Look at SE, looks featured packed but still lack of specification and feature.

Look at N95 8GB vs W960i 8GB. Certainly many will look at N95 rather than W960i.

Sony Ericsson must produce some model that match user requirement and demand.

Especially the early 2008 model, if you want 3G you lose EDGE, even when you got 3.5G but specification lack of something such as WiFi.

Look at nokia, almost every 3G phone support EDGE and those 3.5G many of them support WiFi

again..the "camera and cameraphone" debate.. lets not go there..

and ya..i think most of the W series a bit redundant now..

How can this be.. So many people I know still buying SE phones. =/ Maybe Apple is taking a bite of the share as well with iPhone =P

That is the problem with SE

Look at the upcoming Nokia N96. Is the best of both world. You got the 5MP carl zeis lens camera, massive 16GB memory card, specially added DSP processor for music player to enhance sound quality (could be better than Walkman does).

WHat have SE done to achieve that? I guess none at the moment.

But what I guess is that a lot of people, who are not that rich okay, they will be using SE, cause its cheap and have quite some features. Like myself using k750. Nobody will care of what new models SE have lah, for the long run, if SE still doesn't realize that, they sure loose out mati matian....its happening now ....

SE is not widely used throughout the world. In other Asian countries I have been, SE is hardly popular. Its just Malaysians are sesat or their marketing team is doing a good job conning u all. yeah, and their radiated power(SAR)level is higher tham most phones.

not really Malaysian are Sesat, I seen many people use Moto, you also call them sesat?

To be honest, SE AP price is better option in term of other competitor phone,

by the way, the endless W series thing, agreed, cameraphone? if K850 did it right, it should be good

the result is shown, X1 might be great phone if released earlier this year

agree with u jinee..
why need to MP race???why not they put more features in their phone like Nokia did??
why SE bring high MP camera phone but not focusing in quality itself??
hope their new C905 will bring back my trust on SE
btw,SE phone still a boring phone even though i use one

second you bro...even the latest k-series (k850i) is quite a disappointment....
no major improvement but bundled with lotsa bugs due to the problematic firmware...
ive been using SE since its T100 and now it seems that i lose my faith with SE...

Apart from buggy firmware, overall SE phone is great. That's my humble 1 cent.

SE and their candybar phones

SE doesnt merely produced candybar phone in their production lines...
there are many others like swivel,slide and flip are available in the market

Nokia also used to be manufactured candy bar shape phone. Theirs used to be bulky.

SE phones are still the most user friendly and equipped with alot of useful features, that's why i like it

wow so serious drop????!!!!

I second that on these part, look like SE very "stingy" on the technology built up.

Maybe SE want to save cost on research and development?

But the earning press conference said that they spent huge in R & D.

yerp...notice that also...they mentioned it...but i couldnt accept they blame the market competition for their losses