Posted by jcwhite_uk
Sony Ericsson has said a slowing global market growth of mid-to-high end phones has negatively impacted the company’s worldwide sales.
The drop is likely to be clearly visible when the manufacturer releases its Q1 results on April 23. The slowing mid-to high-end market could hit Sony Ericsson more than any other manufacturer, as Sony Ericsson’s range focuses heavily on that level of handset.
The global market trend is at odds with the UK, where mid range handsets are currently experiencing a boom. This is largely due to UK operators pushing cheaper tariffs that offer mid-market devices as part of the contract.
Dick Komiyama, President of Sony Ericsson, said: ‘As discussed during our fourth quarter 2007 Media and Analyst Call, the market is proving to be challenging.
’This has been more pronounced in the mid-to-high end replacement sector of the market in Europe, where Sony Ericsson has stronger than average market share.’
Posted by bavlondon2
Has Nokia or Samsung released their Q1 figures yet?
Posted by razec
So this means SE should start concentrating on High-Ends?
Posted by bavlondon2
This means SE execs needs to pull their fingers out of their arse and start making their phones better all round performers.
Posted by jcwhite_uk
Full Press release:
Sony Ericsson Mobile Communications AB (“Sony Ericsson”) today announces that moderating sales growth of mobile phone units is expected to negatively impact net sales and net income before tax (“NIBT”) for the first quarter of 2008. Slowing market growth of mid-to-high end phones in markets where Sony Ericsson has a strong presence is affecting sales. In addition, certain component shortages for popular mid-priced phones have contributed to modest unit sales growth in the first quarter.
“As discussed during our fourth quarter 2007 Media and Analyst Call, the market is proving to be challenging. This has been more pronounced in the mid-to-high end replacement sector of the market in Europe, where Sony Ericsson has stronger than average market share,” says Dick Komiyama, President of Sony Ericsson. “For the last year, Sony Ericsson has been focused on expanding the breadth of its portfolio and developing its presence in new markets to lessen its historic reliance on the European high-end sector for growth. This strategy will continue, and our objective remains to become a top three player globally by 2011. As part of this strategy, we have announced fifteen new phones and introduced a new platform to the portfolio, Windows Mobile®, this year. We expect to start seeing a positive effect from these announcements during the second half of 2008.”
Although final results may differ, Sony Ericsson now plans to ship approximately 22 million phones during the first quarter of 2008 with an estimated ASP (Average Selling Price) of EUR 120. This is expected to generate net sales lower than the first quarter of 2007, and NIBT is estimated to be in the range of EUR 150 – 200 million due to increased R&D expenses as a percentage of sales. The increased investments in R&D are in line with the company’s strategy to meet future growth ambitions. In addition, Sony Ericsson currently expects gross margin to remain relatively stable for the first quarter of 2008 compared with the first quarter of 2007.
Sony Ericsson plans to announce first quarter 2008 results on April 23rd
Posted by Mizzle
On 2008-03-19 14:07:52, bavlondon2 wrote:
Has Nokia or Samsung released their Q1 figures yet?
Is Q1 over yet?
Posted by bavlondon2
No but Nokia should be at the same stage of complicing these figures too just like SE are.
Posted by xell
The consequence has to be - and I know you don't want to hear this - to expand market share on lower market segments, low-mid or mid-range phones to stabilize the whole market share. The whole high-end market sold less. If they want growth, they have to release more lower level products.
Sure we are geeks, we want the highendest phones available. The average joe wants to text and make calls.
Posted by bavlondon2
The least they could do is make sure that high end phones they give us are at least capable of matching the competition.
Posted by Mizzle
Where did goldenface's reply go??
Posted by gola
I'm confident in SE's 2008 lineup
nokia and samsung,watch out 
Posted by mario2004
Well, for now Motorola and SE must watch out. Samsung are OK (Not to mention the giant.) Nokia will add another 1.5 to 1.8 market share. Only God knows how long time will pass until they get 50% and call the shots?
Microsoft did go pretty much the same route. Slow in the begin and quick at the end. The S60 OS is something to get accustomed with - sooner or later - touch screen or not. Samsung and LG are doing the right thing
Motorola is pretty much out of the window with SE limping on one leg. Yes, yes I know Alcatel will post a slight profit, but they are even worse then SE (not by much thou)
Posted by carkitter
Not that you actually know what your talking about though, eh Mario.
So the mid to high end market has dropped? This only vindicates SE's decision to expand its low end portfolio which has been widely criticised here on Esato. Will all SE's critics now apologise to SE for doing the smart thing - getting it's eggs out of just one basket so to speak?
I note with interest the Average Selling Price is expected to be 120 Euros, which is good because it means SE can still shift 22 million phones this quarter without having to resort to heavy discounting like Motorola.
If the market shrinks significantly into Nokia's territory of low-end phones then Nokia's ASP will crumble as will thier profits. Pressure will go on manufacturers to extend the model life of mid to high end models which means we won't see the constant rush of new phones from SE that we saw in 2007.
I've just got a V640i and I'm HUGELY impressed by it to the point where I'm struggling to see anything close to it in terms of Camera quality and UI, Media player sound quality and UI, hsdpa is AWESOME, this phone rocks at only NZD$399 on release and this will impact SE's sales as I won't be wanting anything else for quite some time. Surely owners of iPhone, N95, N95 8GB, N81, N82, W910i, W960i, T650i will all be thinking the same thing? The mid to high-end market will return once us financially overcommitted phone geeks find our toys getting old - in about 12-18 months time.
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[ This Message was edited by: carkitter on 2008-03-22 20:42 ]
Posted by goldenface
@carkitter
Very true! However, I don't think that SE will let up as it has indicated that it will still strive for the top three position and is actually pinning its H208 success on phones yet to be released.
It looks like an industy wide dip. Mobile phone sales have been booming for a very long time now so and eventual slow-down shouldn't really surprise anyone. Texas instruments is reporting a drop in advanced chips.
Handset Woes Extend Beyond Sony Ericsson
Posted by max_wedge
Thank you carkitter, well said!
True every word.