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Sony Ericsson reports third quarter results |
Mizzle
Joined: Oct 06, 2006
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http://www.sonyericsson.com/c[....].Q308financialresults-20081017
Q3 highlights:
* Break even results, excluding restructuring charges, as challenging business conditions continued
* C902 Cyber-shot™ camera phone is hit model of the quarter
* First Xperia™ branded multimedia phone X1 began shipping
* Expansion of music service offering with announcement of PlayNow™ plus
London, UK - The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2008 is as follows:
[check the link]
Units shipped in the quarter were 25.7 million, a sequential increase but flat year-on-year, while sales for the quarter were Euro 2,808 million, a decrease of 10% compared to the third quarter of 2007. Most of this decrease reflects the impact of exchange rate fluctuations, as well as a shift of the product mix to more lower priced phones. Gross margin also decreased year-on-year and sequentially due to continued price pressure at a time of adverse cost trends in the supplier base. This was partially mitigated by the introduction of new products at the end of the second quarter, such as the C902 Cyber-shot™ camera phone, which is selling well; however, strong competition continues, particularly in Europe. Income before taxes for the quarter was Euro 12 million, excluding restructuring charges of Euro 35 million, a decrease compared to the third quarter of 2007.
Average selling price (ASP) for Sony Ericsson decreased both sequentially and year-on-year in line with levels seen in previous quarters. This is due to selling more lower priced phones and increased price competition in the market for mid- to high-end phones. Sequentially, market share for the third quarter remained flat and is estimated to be around 8%.
“As expected the third quarter has continued to be challenging for Sony Ericsson. We have moved forward with our plans to align operations and resources with the consolidation of R&D facilities into a more agile and cost efficient organisational structure. As previously announced, our target remains to reduce operating expenses by Euro 300 million annually by the end of the second quarter 2009, with the full effects expected to appear in the second half of 2009.These plans are progressing in line with expectations,” said Dick Komiyama, President, Sony Ericsson. “We are committed to executing our alignment plan as speedily as possible to ensure we have the right size and organisational structure to return the business to healthy profitability.”
During the third quarter Sony Ericsson announced PlayNow™ plus,the next step in its music service offering. PlayNow™ plus is a high speed and high quality music download service for both the phone and PC that will launch in the fourth quarter with Telenor in Sweden with a special edition Sony Ericsson W902 Walkman® phone integrated with the PlayNow™ plus service. Further roll-outs of the service are planned with other network partners around the world in early 2009.
Sony Ericsson also announced a number of new phones in the quarter, including three new Walkman® phones, its first UMA handset (G705u) and the first models with integrated You Tube™ connectivity (W595, W902, G705). In addition, Sony Ericsson started a major marketing initiative to launch its first multimedia convergence phone under the new sub-brand; Xperia™, and started shipping the phone, the Xperia™ X1, at the end of the quarter.
As communicated previously, Sony Ericsson paid a second dividend to the parent companies totalling Euro 300 million (Euro 150 million each) in the quarter based on 2007 earnings, and at the end of September 2008 Sony Ericsson had net cash of Euro 1.4 billion.
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, while the industry ASP will continue to decline. The majority of this growth is expected to be in emerging markets where lower priced phones dominate.
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yea g
Joined: Jul 02, 2008
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Interesting read. Thanks for posting 
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goldenface
Joined: Dec 17, 2003
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They lost $31 million which is actually a lot less than most, including myself, predicted.
There wasn't that many hit phones last quarter with only the C902 really standing out. They'll be back on track by Q12009 as the X1, W902 which I'm predicting to be huge, C905 and W595 all be on sale.
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crossmatched
Joined: Jan 05, 2006
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C902 will sell more this coming november as part of the quantum of solace hype 
4th quarter/year ender financial results will be interesting.
C902, c905, w902 and x1 are expected to be hits
www.secondmanonthemoon.blogspot.com
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gola
Joined: Jul 17, 2007
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I thought the w980 sold well 
"Getting wisdom is the wisest thing you can do!"
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goldenface
Joined: Dec 17, 2003
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The W980i only went on sale early September. The above figures are for July - September.
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razec
Joined: Aug 20, 2006
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I Feel that c905 sales alone will bring SE back on track. everytime i look at the phone in pictures, they are shouting k750-hit!
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gola
Joined: Jul 17, 2007
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On 2008-10-17 10:56:37, goldenface wrote:
The W980i only went on sale early September. The above figures are for July - September.
Fantastic
"Getting wisdom is the wisest thing you can do!"
Proverbs 4: 7 |
bodeh6
Joined: Dec 14, 2006
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Q4 should prove to be great. Hey even Nokia had a dismal Q3.
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gtr83
Joined: Sep 27, 2008
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Should also note that the world is currently in a financial crisis which may have affected the mobile phone market. Especially in the USA and some parts of Europe - you'll know it, bodeh. |
QVGA
Joined: May 23, 2006
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how did it go for the other manufacturers?
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carkitter
Joined: Apr 29, 2005
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On 2008-10-17 17:03:59, bodeh6 wrote:
Q4 should prove to be great. Hey even Nokia had a dismal Q3.
I'm not surprised if the N96 is anything to go by.
I had a play with one about a week ago and was underwhelmed. It was selling for a massive NZ$1899 while the N95 8GB goes for NZ$1399, N95 for NZ$799 and I got my iPhone for NZ$699 (on a 24month contract). The Nokia UI seems to be getting worse, Nokia can't make a slim phone to save their lives and the styling was bland. It made the iPhone look spectacular!
8800 Tube looks interesting, the spec is great but I suspect the user experience will be disappointing. SE understand what the iPhone has done to the UI experience, that why their new premium range is called Xperia!
I like the look of SE's new range, C702, C902, C905, G502, G705, S302, W302, W595, W902, all hit their target markets very well IMO and should improve SE's sales. W980 is great but a little underspecced for it's target market; I feel it'll probably not sell so well but be excellent value when the price comes down further. Glad to see SE announcing and shipping phones in the same quarter.
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Posted: 2008-10-17 09:12
