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Sony Ericsson continues to invest for future growth |
whizkidd
Joined: May 14, 2004
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From: India
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Sony Ericsson continues to invest for future growth
23 April 2008
Q1 Highlights:
• Year-on-year volume growth of 2%
• Income before taxes at higher end of forecast
• R&D investment continues to expand portfolio and addressable market
• New sub-brand XPERIA™ added to portfolio
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the first quarter ended March 31, 2008 is as follows:
Q1 2007 Q4 2007 Q1 2008
Number of units shipped (million)
21.8 30.8 22.3
Sales (Euro m.)
2,925 3,771 2,702
Gross Margin %
30.3% 31.8% 29.2%
Operating Income (Euro m.)
346 489 181
Operating Income (%)
11.8% 13.0% 6.7%
Income Before Taxes (Euro m.)
362 501 193
Net income (Euro m.)
254 373 133
Average Sales Price (Euro)
134 123 121
121
Units shipped in the quarter were 22.3 million, a 2% increase compared to the same period last year and in line with our March 19, 2008 interim announcement of 22 million units. Sales for the quarter were Euro 2,702 million, a decrease of 8% on a year ago due to slowing market growth in mid-to-high end phones in markets where Sony Ericsson has a strong presence. Gross margin was one percentage point lower than Q1 2007, reflecting a less favourable product mix. Income before taxes for the quarter was Euro 193 million, which was at the higher end of the range (Euro 150-200 million) we announced on March 19, 2008. This represented a decrease of 47% compared with a year ago, due to higher R&D investments as a percentage of sales, and reflecting that Q1 2007 was a particularly strong first quarter for the company. Net income for the quarter was 48% lower, at Euro 133 million.
“Sony Ericsson continues to invest in expanding its product portfolio to appeal to a wider variety of consumers in both new and existing markets,” said Dick Komiyama, President, Sony Ericsson. “Our product announcements during the first quarter have been well received by the industry, and we expect to see a positive effect from these announcements during the second half of 2008.”
During the quarter, Sony Ericsson added a new sub-brand to its product portfolio with the announcement of the XPERIA™ X1, a high-end multi-media convergence phone based on Windows Mobile®, which will launch in the second half of the year. In addition, the company announced a number of new phones during the quarter to increase the appeal of its brand to a broader audience. These included new high-end Walkman® and HSDPA web phones, such as the W980, W760, Z770 models and also added to its cutting-edge Cyber-shot™ range with models such as the C702 and C902.
Average selling price (ASP) decreased both sequentially and year-on-year due to the impact of softer sales of high-to-mid end models in key markets. Market share for the quarter is estimated to be around 8%, down one percentage point sequentially.
Sony Ericsson made a dividend payment of Euro 470 million during the quarter to the parent companies. A second dividend payment will be made this year.
Sony Ericsson forecasts that the global handset market for 2008 will grow at a rate of around 10% from more than 1.1 billion units in 2007. The majority of this growth is expected to be in emerging markets.
http://www.sonyericsson.com/c[....]semcfinancialsrelease-20080423
[ This Message was edited by: whizkidd on 2008-04-23 09:17 ] | |
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NightBlade
Joined: Jul 29, 2007
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From: Nessebar, Bulgaria
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Tisk tisk tisk SE. |
carkitter
Joined: Apr 29, 2005
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From: Auckland, NZ
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Its not such a bad result.
SE predicts 10% growth this year mainly from emerging markets which means that average selling price will drop as more low priced phones are sold. SE's ASP is still 50% higher than Nokia's so SE retains it's premium image.  Lets hope SE's massive investment in R&D pays off with some phones with WOW! factor to bring the high end market back from Nokia's S60 range.
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crossmatched
Joined: Jan 05, 2006
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From: RP
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On 2008-04-23 10:21:41, NightBlade wrote:
Tisk tisk tisk SE.
what does that suppose to mean?
www.secondmanonthemoon.blogspot.com
we are all works under progress |
Keiki
Joined: Mar 27, 2008
Posts: 160
From: Valhalla
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Quote:
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On 2008-04-23 10:11:46, whizkidd wrote:
During the quarter, Sony Ericsson added a new sub-brand to its product portfolio with the announcement of the XPERIA™
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I think  strategy is to make Xperia a multimedia - all rounder phone like nokia N series
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Fanofmodi
Joined: Jan 03, 2008
Posts: 191
From: Hindustan
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Only 22m handsets sold against LG 24m. What does that mean?
Hell is empty,
All the devils are here.
K750>W800>W810>W850>J100>P900>K790>M600>K800>W880>K810>W580>K850>W890>C902. |
xironghostx
Joined: Feb 06, 2006
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From: Sweden
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LG sold more phones  |
xell
Joined: Jan 15, 2006
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c96sthl
Joined: Mar 31, 2002
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the gap between SE and LG shrinked this quarter but it happen before in 2005 since Korean maker tense to get very strong in Q1 when all others europe/ US have finish their holiday season....if not mistaken...most major asia holiday like Chinese Lunar New Year or maybe Korean/ Japan new year all fall in Q1. Tht could be why.
BUT if SE still lag behind LG in Q2....then it will mean SE is suffering in market share but no matter how....it need to make sure it get enough profit to get us innovative product. Tht is the key and things we really hope for. |
Supa_Fly
Joined: Apr 16, 2002
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From: Toronto, Ontario
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On 2008-04-23 10:21:41, NightBlade wrote:
Tisk tisk tisk SE.
You are forgetting that SE had mentioned weaker sales would result in their higher spending of Research & Development in order to expand their portfolio for future growth. this was mentioned by SE in a press announcement 2Qtrs previously.
|AppleTV2|iPhone 12Mini 256GB|iPad Pro 256GB| Previously ...  K750|Z500|Z520|K700|K790i|K850i, :Ericsson: T18z|T28World|T36m x3|T68m (Ericsson, not the rebranded T68i). |
mib1800
Joined: Mar 18, 2004
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On 2008-04-23 13:49:45, c96sthl wrote:
the gap between SE and LG shrinked this quarter but it happen before in 2005 since Korean maker tense to get very strong in Q1 when all others europe/ US have finish their holiday season....if not mistaken...most major asia holiday like Chinese Lunar New Year or maybe Korean/ Japan new year all fall in Q1. Tht could be why.
In Q1 07, SE has 8.65% and LG 6.27%. That's quite a huge reversal with LG overtaking SE. I think it is more due to SE having a very bad Q1 instead of seasonal fluctuations |
QVGA
Joined: May 23, 2006
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From: Pakistan
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Pretty much all those numbers have decreased from Q1 2007 to Q1 2008. Maybe if SE keeps on releasing half-assed phones like K660, G502, Z770, we might see a similar trend in Q1 2009.
Nokia is offering WiFi and a whole bunch of other stuff in very cheap phones and SE has absolutely nothing to counter that. LG has made some exceptional phones within the last year, some very trend setting. Samsung has also made very good phones like the F series and U series. SE on the other hand announced XPERIA and to kill that off they set a release date when the phone will be outdated.
I think the 'R' part of R&D is severely lacking.
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hgautam
Joined: Jan 29, 2006
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These included new high-end Walkman® and HSDPA web phones, such as the W980, W760, Z770 models and also added to its cutting-edge Cyber-shot™ range with models such as the C702 and C902.
High-end walkman??? W760 and W980??? I have used both, W980's volume is low, both through loudspeaker and headphones, the quality ain't much different either... Things might change by the time it comes to market but with SE I haven't seem that much improvement from proto to final products... And W760 has enough reviews to state that it sounds just like other walkman phone (not bad, but not even satisfactory) through headphones and the loudspeaker have poor audio quality... And these are the walkman's what SE is proud of???
And wait a minute, "CUTTING EDGE Cyber-shot™ range with models such as the C702 and C902", C702 has a decent camera but even after being a cutting edge cybershot it doesn't have a Xenon flash, only a two LED??? As for C902, picture quality wise it's camera ain't good enough and forget about the single LED flash which might only be a little powerfull than normal LED flash... Even if they were calling photo-flash (powerful than nornal LED flash) then atleast SE should have put a 2 LED photo flash...
^^ A lot of anger there?? Sorry but couldn't help, SE is too overproud of their so-called "High-End"/"Cutting-Edge" phones...
@QVGA
Completely agree with you there, other than X1 getting outdated by the time it comes out... See features wise, other than having XPERIA and WVGA, there was nothing which TyTn II lacked (Windows mobile 6.1 ain't makes any difference)... So it can be said that it was outdated even when it was announced... But the reason I think it should not be said to be outdated when it launches is that, as a complete package, compact design/looks, featres, Xperia and a WVGA, X1 is completely a different product even though similar enough... |
mario2004
Joined: Sep 16, 2006
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From: South Africa
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'I've told you so', check my previous post about SE and LG.(JAN 2008) I got laughet at by the SE fans because of daring to suggest, LG will give SE a 'run for their money' begining with the 1Q of 2008  . Nokia had a 23% growth from 1q last year (well short of the expected 42% I might add),SE had what, 3 If one takes inflation into account is more like -1. In financial/business/economic terms, that's called a 'recession' (f....up in everyone's language). I thing the heading of this tread should be changed from '. . . future growth' to '. . . future shrink'
'Better govern our selfs the wrong way, then be governed by 'others' the right way.'
- Robert Mugabe - Freedom fighter comarade, peoples hero and President of Zimbabwe. |
BobaFett
Joined: Jan 06, 2004
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2% ? no offence, but thats nothing imo... no wonder, if they wanna still sell the same crap since ages, cybershot and walkman isnt enough now a days, the "wow" effect its over... they just cant step over their own shadow...
no innovation, no new ideas, nothing...
ok, xperia is sg new, but its just a redesigned htc with uiq. built in navi with google maps? then whats for is the gps, if u can use it only online? etc etc etc
dear se, u have the most loyal and patienceful fans amonf every barnd, just take a look at on esato. these guys keep to u since ages. so maybe some constructive marketing and thinking could "take you forward"...
u know what? let the "s" part of the brand help out in the harvets ( guess they made enough experiences on the ricefields ) and let the "e" part make the design, fw and development, not only the hw...
cheers
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Posted: 2008-04-23 10:11
K750|Z500|Z520|K700|K790i|K850i, :Ericsson: T18z|T28World|T36m x3|T68m (Ericsson, not the rebranded 
