masseur
Joined: Jan 03, 2003
Posts: > 500
From: Sydney, London
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Sony Ericsson reports First Quarter Results
15 April 2005
Tokyo and Stockholm, April 15 -- Sony and Ericsson today announced the consolidated financial summary for the first quarter ended March 31, 2005 of Sony Ericsson Mobile Communications AB (Sony Ericsson), the 50:50 joint venture of Sony and Ericsson.
| | Q1 2004 | Q4 2004 | Q1 2005 |
| Numbers of units shipped (million) | 8.8 | 12.6 | 9.4 |
| Sales (EURO m.) | 1338 | 2005 | 1289 |
| Income before taxes (EURO m.) | 97 | 140 | 70 |
| Net income (EURO m.) | 82 | 55 | 32 |
* Q4 2004 and Q1 2005 IBT includes consolidation of BMC and Net Income includes deduction of minority interest in BMC 1)
** Q4 2004 Net Income includes a negative effect of a valuation allowance on deferred tax assets of Euro 45 million
Units shipped in the quarter reached 9.4 million, a 7% increase compared to the same period last year. Sales for the quarter were Euro 1,289 million, representing a year on year decrease of 4%. Income before taxes was Euro 70 million and net income was Euro 32 million, which represent year on year decreases of Euro 27 million and Euro 50 million respectively.
In line with expectation, market growth was moderate during the quarter. As a result of more normal seasonality the market declined sequentially. The Western European market declined slightly and witnessed a shift to pre-paid products, while general inventory build up in the sales channels during Q4 spilling over into the first quarter created a more competitive market environment than a year ago.
Sony Ericsson’s decrease in average selling price (ASP) was partly due to the general market conditions outlined above, but also because the product line-up was mature and few new products were launched during the period. The company continued investment in product portfolio and brand development, while maintaining gross margins.
“The exciting and innovative products we announced during the first quarter have been well received and will give us a stronger portfolio during the rest of the year,” said Miles Flint, President of Sony Ericsson. “We believe there is good growth potential in the market, both from new subscribers and from consumers who are upgrading their mobile phones, so the increased investments we are making now will build our brand and strengthen our product portfolio so we can continue to excite consumers.”
During the quarter Sony Ericsson announced a large number of new products including two new 3G UMTS phones, the company’s first 2 megapixel auto focus camera phones and a new Walkman® branded music phone as well as several other phones and accessories that will roll out during Q2 and Q3. Sony Ericsson started shipping the T290 and K300, the S710 in the United States plus the A1404S for KDDI and the NTT DoCoMo premini-II in Japan. The company also activated a major global sports sponsorship deal with the Women’s Tennis Association Tour during the period, which was renamed the Sony Ericsson WTA Tour.
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govigov
Joined: Jul 30, 2004
Posts: > 500
From: Back home - Cochin
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Hehe, welcome back! I didnt read the results.
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Ing. FijoK
Joined: Sep 11, 2004
Posts: > 500
From: Prague, Czech Republic
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Quote:
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On 2005-04-15 09:38:56, govigov wrote:
Hehe, welcome back! I didnt read the results.
<p>
<i>This message was posted from a K500</I>
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...  welcome back @masseur!
(excuse my off-topic)
I saw the man who can change my destiny... He stood in the mirror. |
etaab
Joined: Jan 23, 2004
Posts: > 500
From: UK - South Yorkshire
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Welcome back masseur ! 
Nice to see my favourit moderator back in town.. (you are still a mod, no ?)
Its nice to see  are selling more phones.
Check me out on Instagram ! search for etaab ! |
batesie
Joined: Feb 13, 2004
Posts: > 500
From: London, UK
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welcome back, i was just reading about that here...
http://news.bbc.co.uk/1/hi/business/4447241.stm
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etaab
Joined: Jan 23, 2004
Posts: > 500
From: UK - South Yorkshire
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"Sony Ericsson said demand suffered because of a "mature" product range. "
Does this mean SE are going to start developing kiddy phones like the Nokia 3200 and 3220 ? 
Check me out on Instagram ! search for etaab ! |
clank
Joined: Sep 24, 2004
Posts: > 500
From: India
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Didnt read the whole thing but from that table with sale/profit figures seems that Q1 2005 has been very disappointing for se  |
DeLa
Joined: Jan 22, 2003
Posts: > 500
From:
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What does that mean, 'mature'? Maybe that they now have products of all tastes and that there isn't a new major breakthrough waiting? Or that all other manufacturers have reached a certain level?
Prices have dropped indeed. If you see what you can get for say €300 now in comparison to only 2 years ago it is incredible. |
JiggyJaggy
Joined: May 21, 2002
Posts: > 500
From: London, UK
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I wonder how that would compare to the results from other manufacturers?
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vineet_d
Joined: Apr 15, 2004
Posts: > 500
From: MumBhai
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welcome back masseur
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senninha
Joined: Jan 05, 2003
Posts: > 500
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'mature' meaning that many or most of the SE products are in the middle or closer to the end of their product life cycles. when the new products hit the market, (Z800, K600, K750, W800, P??? etc.) they would presumably bring another sales surge.
it's just the normal ebb and flow of sales during a product line's life cycle, especially since different companies' new product launches are often not in sync with each other. |
nitesh
Joined: Oct 08, 2004
Posts: 471
From: BOMBAY
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Finally i read a news on Esato,lol. Thanks massuer.;-)
This message was posted from a T610 |
knight4led
Joined: May 27, 2004
Posts: > 500
From: Califonia, USA
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these figures don't seem all that promising, but one good thing they do show is that the average price of phones is going down.
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goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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I think the average price is going to come down soon what with the K300 low end handsets being launched.
If SE were released new handsets more consistently then there wouldn't be this dip in sales.
I think on average over the next few quarters the sales and market share will be up, especially around Q3/Q4 of this year when this years releases hit the shelves. |
vanquish
Joined: Mar 20, 2003
Posts: > 500
From: Wor Newcastle Phone: V600i
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I told you all when the S700i was released. It was the wrong phone, too expensive and over-rated.
Hopefully the release of the new phones, which i am hoping will be quick and not too expensive, will see develop a more stable rise in popularity.
This new BBC article discusses the earnings of Sony Ericsson, alongside its rivals etc.
Extract:
"Sony Ericsson has reported a drop in quarterly profits and sales amid subdued demand for the Japanese-Swedish mobile phone company's products.
Pre-tax profit in the three months to 31 March fell 28% to 70m euros (£48m) from 97m euros a year earlier. Sales fell to 1.29bn euros from 1.34bn euros.
These were the latest tech industry figures to disappoint analysts.
Sony Ericsson said it was squeezed by lower prices while demand was hit by a "mature" product range."
Sony Ericsson sees earnings slump - Business BBC article
Copyright BBC MMV
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Posted: 2005-04-15 09:35
