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.

This post has been edited by rayzrblade: Aug 1 2008, 01:32 PM

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

This post has been edited by PGV3910: Jul 19 2008, 03:14 PM

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"

This post has been edited by PGV3910: Jul 19 2008, 03:01 PM

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?