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Sony Ericsson reports second quarter results |
xell
Joined: Jan 15, 2006
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Q2 Highlights:
* Break even results amid challenging market conditions and increased competition
* Announcement of Open Mobile Software platform and Symbian Foundation
* R&D investment continues
* Alignment of operations to help restore profitable growth
Units shipped in the quarter were 24.4 million, in line with our June 27, 2008 interim announcement of 24 million units. Sales for the quarter were Euro 2,820 million, a decrease of 9% compared to the second quarter of 2007 due to unfavourable exchange rate fluctuation, continued slowing market growth in mid- to high-end phones and increased competition. Gross margin also decreased compared with a year ago reflecting a less favourable product mix, with particular impact in Europe, and increased price competition in general. Income before taxes for the quarter decreased compared to the second quarter of 2007 for the same reasons, as well as due to higher R&D investments as a percentage of sales.
Average selling price (ASP) for Sony Ericsson decreased both sequentially and year-on-year due to the impact of a greater proportion of lower priced phones in the product portfolio, as well as increased price competition in the market for mid- to high-end phones. Market share for the second quarter is estimated to be around 8%.
During the second quarter Sony Ericsson announced seven new phones, including its first 8 Megapixel Cyber-shot™ model, the C905. In addition the company started shipping 12 new phones, including a number of mid- to high-end Cyber-shot™ and Walkman™ models toward the end of the quarter.
“We are aligning our operations and resources worldwide to meet an increasingly competitive business environment and to help restore our capability for profitable growth. The measures we are taking are aimed at becoming a faster, more agile and more cost efficient organisation that can continue to create innovative products that excite consumers,” said Dick Komiyama, President, Sony Ericsson. “Our target is to achieve a reduction in operating expenses of Euro 300 million annually, with the full effect expected to appear within a year. We estimate that our restructuring charges will be of the same magnitude as our reduction in operating expenses, and we will incur such charges as our measures are implemented.”
Sony Ericsson joined leading phone manufacturers, operators and vendors in announcing its support for the establishment of the Symbian Foundation, an initiative that will enable all members of the foundation to use the Symbian operating software platform, royalty-free. The Symbian Foundation is planned to be operational by the end of 2008.
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, with continued decline in industry ASP. The majority of this growth is expected to be in emerging markets where lower priced phones dominate.
Challenging market conditions are expected to prevail for Sony Ericsson for at least the rest of 2008, and in particular for the third quarter.
More: http://www.sonyericsson.com/c[....]nancialpressreleaseq2-20080718 |
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anonymuser
Joined: Dec 17, 2002
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Sad.
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xell
Joined: Jan 15, 2006
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Indeed. |
NightBlade
Joined: Jul 29, 2007
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From: Nessebar, Bulgaria
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On 2008-07-18 14:06:19, xell wrote:
...to create innovative products that excite consumers,”
Riiight...
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Muhammad-Oli
Joined: Jun 13, 2004
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...continued slowing market growth in mid- to high-end phones and increased competition.
I can't help but think this is their own fault. Surely they wouldn't be noticing slowing growth if they produced a high-end phone that everyone wanted, or was truly worth having. And for the increased competition, the same goes. If they have something better than the competition, they'd notice the competition's presence a lot less.
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2008, 2009, 2010 Best Australasian Member. |
Dups!
Joined: Sep 24, 2006
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They only have themselves to blame. Once they were extremely promising now they trail... and far behind. |
>500
Joined: Jan 24, 2006
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"...continued slowing market growth in mid- to high-end phones and increased competition"
righteo.................
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Raiderski
Joined: Jul 03, 2006
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a decrease of 9% compared to the second quarter of 2007
sad? Nokia profits for Q2 are 61% lower...
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NightBlade
Joined: Jul 29, 2007
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From: Nessebar, Bulgaria
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On 2008-07-18 14:31:46, Raiderski wrote:
a decrease of 9% compared to the second quarter of 2007
sad? Nokia profits for Q2 are 61% lower...
Seriously? How... unfortunate. 
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xell
Joined: Jan 15, 2006
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On 2008-07-18 14:34:52, NightBlade wrote:
Seriously? How... unfortunate.
Seriously. http://www.nokia.com/A4162334 |
SilveR.
Joined: May 03, 2002
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And 2000 people have to leave SE.. most of them in Lund I do believe..
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>500
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 profits were down 97% for q2.....if i read the yahoo article correctly which was posted in the rumours thread.
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Jimster71
Joined: Nov 03, 2006
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SilvR, where did you hear about the lund part of that? |
mario2004
Joined: Sep 16, 2006
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On 2008-07-18 14:31:46, Raiderski wrote:
a decrease of 9% compared to the second quarter of 2007
sad? Nokia profits for Q2 are 61% lower...
Huh buddy, don't fool yourself (and others). The reason why Nokia has a 61% drop is because of the amalgamation with Siemens ! ! ! which happened in the 2nd quarter of 2007 ! And in so doing became one of the biggest companies in the world ! They went on to have a 'bumper' 2007 season, with sky-rocketing share prices and market expansion ! It is interesting to note,while nokia have just increased their market growth projection for 2008, SE did just the opposite ! ! The only other company to do that is Motorola  . Only a fool will see this report as positive.I wonder how much longer Ericsson will have any of this until they leave Sony all together. I belive Sony is still manufacturing phones for Japan.If SE does not 'wake up' soon, we might be back to square one before the end of the decade
'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. |
SilveR.
Joined: May 03, 2002
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On 2008-07-18 16:35:47, Jimster71 wrote:
SilvR, where did you hear about the lund part of that?
most of Swedish news site says that.. but SE will cut from every where,, but I think Swed will be no1
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Posted: 2008-07-18 14:06
