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Sony Ericsson continues to invest for future growth |
ayejatt
Joined: Dec 15, 2005
Posts: > 500
From: Hong Kong
PM |
Sony Ericsson’s net profit drops by 48%
http://mobiletoday.co.uk/Sony[....]rofit_drops_by_48_percent.html
[+34,-0] esato+se-nse, 63 Trades SEs: SO905iCS White/Gold, C905, C902,  595, 810i, 850i, 880i, 890i, 900ix4, 910i, P990i, Z610i Blue, z610i Black,K800i,K550i,K610 |
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makbil
Joined: Oct 26, 2006
Posts: > 500
From: Istanbul
PM |
No surprise there. Word gets around about the P990 fiasco and the K850 problems.
I don't agree with the reason though. Is it really that interest in high end phones have shrunk or is it that people got fed up with incompetent SE trying to push old devices with new makeover... I hear N95 and N95 8 GB sales are pretty good, so the reasoning doesn't sound correct.
Low level phones will give SE the advantage that those users may not be so demanding of SE than users of high level devices. However, if SE chooses that direction I'm afraid it may be the beginning of the end for SE as we know it.
P990i: A mistake, a curse and a disgrace  So I lowered my expectations and settled for a P1i. I couldn't keep my expectations so low for a long time so now I have an HTC Touch HD |
carkitter
Joined: Apr 29, 2005
Posts: > 500
From: Auckland, NZ
PM |
And in that article, not a single syllable about SE's major investment in R&D which is the reason for the drop in net profit, and nothing about the 470 million Euro dividend SE paid it's parent companies. That signals a very healthy company IMO depite market changes.
That 'journalist' should know better than to post a beatup like that instead of real news. Nokia fanboy maybe? 
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mario2004
Joined: Sep 16, 2006
Posts: > 500
From: South Africa
PM, WWW
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Yeah, that almost half a billion was what broke SE's back last year,forcing them to release half finished products which name I care not naming.I have pointed out by then that Ericsson expects another simillar payment this time around,which will push SE even deeper in mud,but no one seem to care. Sony does not really care about the cell marked anymore (they expect to make money with the play station and blue ray). Ericsson never really cared much (actually they already have their own problems as is) That leave SE no where. Alcatel and especially Htc,are not far behind ! Sad but true. Their only chance is to licence the s60 OS (shortly with touch screen) As Samsung and Lg did (incidentally both companies doing fairly well). Yes they will have to pay Nokia a small cut for each and every unit sold - but that's life -
'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. |
@ftyk
Joined: Apr 20, 2008
Posts: 139
PM |
se used to throw in a lanyard & cleaning cloth with earlier phones but they stopped doing that now, atleast in the asia-pacific region.
is that what you call "future growth"?
@qvga,
if you ask me se needs a crash course on the entire concept of r&d. not only the research but they don't have a clue about the development part as well.
@bobafett, excellent post.
[addsig] |
makbil
Joined: Oct 26, 2006
Posts: > 500
From: Istanbul
PM |
The P900 package contained a cleaning cloth and a carrying case. The P990 had neither, even the manual looked like it was a photocopy. Many of those who bought the P1 complained about adhesive inside the pouch supplied that got stuck on the device.
This is no way to save money, it just irritates users who paid over $1000 that they were cheated of a $0.25 piece of cloth.
P990i: A mistake, a curse and a disgrace So I lowered my expectations and settled for a P1i. I couldn't keep my expectations so low for a long time so now I have an HTC Touch HD |
hgautam
Joined: Jan 29, 2006
Posts: > 500
PM |
^^^
So true...
I fact most of the of the posts in this thread so far... |
goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
PM |
Sony Ericsson has been performing amazingly for quarter after quarter for Year after Year and the 1st so-so quarter they have its suddenly all doom and gloom.
Of course some can't wait to dance on SE's grave and thats only to be expected but I'm bit more optimistic than that. 
I'm going to see if this is more than a blip before I worrying too much about them going under.
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Brightspark
Joined: Aug 19, 2007
Posts: 326
From: UK
PM |
On 2008-04-24 09:03:05, carkitter wrote:
And in that article, not a single syllable about SE's major investment in R&D which is the reason for the drop in net profit, and nothing about the 470 million Euro dividend SE paid it's parent companies. That signals a very healthy company IMO depite market changes.
That 'journalist' should know better than to post a beatup like that instead of real news. Nokia fanboy maybe?
you said the R&D was the reason for their 48% drop in profits? is it a coincidence that their investment in R&D coincided perfectly with a massive drop in sales?
the truth is more to do with SE releasing rehash after rehash, and expecting the customer to do their beta testing on their eternally buggy software, in addition to putting up with eternally sub-standard build quality.
looks like the truth is now finally coming back to bite SE on the bottom.
if you want SE to improve, don't make up half-assed excuses for them.
[ This Message was edited by: Brightspark on 2008-04-24 17:01 ] |
Fanofmodi
Joined: Jan 03, 2008
Posts: 191
From: Hindustan
PM |
One after another, keep coming all SE bashers. I love this thread. |
KingBooker5
Joined: May 12, 2007
Posts: > 500
From: London, England
PM |
Well its not surprising.
People are starting to wake up from all the brand names. People are tried of seing crappy 2mp cameras in higher end phones. People are tired of waiting for annual flag ships which need new FW every month.
At Bobba 2% may not seem a lot, but we are talking big numbers here, 2 % may be something like 1,000,000. And even if it isn't LG are still selling more.
Since the k750 , we are getting 3 year old flag ships still incorperating a 2mp, a 2mp that is not even as advanced as the 3 year old k750! Just look at the w850, w910.
EDIT
I have a question to Xperia fan boys. I wan't you guys to answer truthly. Do you honestly expect the Xperia to be bug free? From what we have seen from recent sony ericssons, especialy smart phones, people have been demanding new FW because it is plagued by bugs. Xperia will be exactly the same, a big faulty phone, a dire attempt to compete with real higher end phones like n95.
[ This Message was edited by: KingBooker5 on 2008-04-24 18:01 ] |
@ftyk
Joined: Apr 20, 2008
Posts: 139
PM |
an old iranian saying my granny used to tell me i'd like to share with you guys :
a friend who only keeps praising you is not your friend as he doesn't want you to get better,
a foe who criticizes you is infact your friend as he shows you your flaws to improve on.
these so called se bashers, as we are labelled, are the true se loyalists who want se to improve & live up to our expectations as we unlike others do not want to switch to another manufacturer.
the motive is to soar se's flag higher & not pull it down.
[addsig] |
carkitter
Joined: Apr 29, 2005
Posts: > 500
From: Auckland, NZ
PM |
@@ftyk
If you really think your being loyal by bashing SE for doing well in 'challenging market conditions' then your even more immature than claiming your from the 7-star Burj-Al-Arab hotel and moaning about the lack of cleaning cloth makes you look!  Surely your concierge can rustle one up! 
I can't believe the amount of people here who feels personally slighted by the lack of a cleaning cloth or Autofocus or a CCD sensor or the ULTIMATE in sound quality...
What keeps me coming back is the UI and with A200 its even better than ever.
And there's no need for half-assed excuses. SE sold more phones in Q1 2008 than Q1 2007, thats good isn't it? They are in business to make money and they did that to the tune of 470 Million Euros - thats good too. The market shifted away from thier high-end products (not good) but they admitted it up front (not tried to hide it like the management of Ericsson did with thier profit warning) and they have a strategy to deal with it - a new president (Dickie Komiyama), increased R&D investment, changes to marketing personnel, and a focus on internet based handsets. This is all good news too. Have any of you noticed the G502 is a HIGH SPEED HSDPA device? Would that make it SE's 3rd 7.2 Mbps modem device after the EC400 and EC400g broadband cards? I can't wait to find out. Cameras and Walkman features aren't the only areas of innovation in mobile technology.
Every company suffers setbacks just as we all do in life. But its way to early to say SE are on a downnward spiral, lets see Motorolas Q1 results eh?
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Brightspark
Joined: Aug 19, 2007
Posts: 326
From: UK
PM |
"SE sold more phones in Q1 2008 than Q1 2007, thats good isn't it?"
They didn't - SE's sales have decreased since 2007 Q1 in real terms because you have to take account of the growth(or slump) in the market. i've explained that here:
http://forum2.mobile-review.c[....]post.php?p=692045&postcount=40
saying that SE sold more in 2008 Q1 than 2007 Q1 is almost like saying that £1 is worth exactly the same in 2008 as 1994(for example). It's wrong because it doesn't take account of inflation and the variable real value of money.
[ This Message was edited by: Brightspark on 2008-04-25 00:55 ] |
carkitter
Joined: Apr 29, 2005
Posts: > 500
From: Auckland, NZ
PM |
Yes, in real terms as you said, SE's increase did not keep pace with the growth in the market. But you fail to take other things in to account which is why I feels your analogy is like comparing apples and onions.
SE is a niche market premium device manufacturer as demonstrated by the fact that SE's ASP has been 134 Euros and is now 121 Euros when Nokia's ASP consistantly hovers around 80 Euros. This means the low-end market pretty much belongs to Nokia - no surprise there.
SE has said the growth in 2008 is forecast to come from emerging markets that means China, India, the Middle East and Africa where expansion of mobile networks are enabling people to have a mobile phone for the first time and sometimes even one phone to a village is enough to transform the way the village interacts with other communities.
Therefore if SE's premium feature-phone market in the 1st World countries shrinks and Nokia's 3rd World entry-level market booms, surely it's natural that SE's growth will not keep pace with overall growth.
In NZ, food prices are rising constantly driven mostly by rising transport costs, in turn driven by rising fuel costs which are also hurting car owners. Add to this a major slump in the housing market after 6-7 yrs of unsustainable boom, high personal debt levels, rising NZ dollar hurting exporters, many of our large manufacturers relocating overseas, the US credit crisis which is being felt around the world and guess what gonna happen to the mid to high end feature phone market here too? The market will shift to the low end Nokia's that first-time teenage buyers want, and the business orientated Nokia smart phones that companies buy for thier staff. These are cyclical things and SE are responding to them.
SE got crucified here on Esato in 2007 for concentrating on thier low-end portfolio (which has saved thier bacon so far this year) and now thier getting crucified for concentrating on the Internet phones that could be the next big thing as high speed HSDPA and LTE are rolled out over the next few years.
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[ This Message was edited by: carkitter on 2008-04-25 01:55 ] |
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Posted: 2008-04-24 00:36
595, 
So I lowered my expectations and settled for a P1i. I couldn't keep my expectations so low for a long time so now I have an HTC Touch HD 
