Weak consumer demand expected to hurt Sony Ericsson's first quarter

Weak consumer demand expected to hurt Sony Ericsson's first quarter
Amid talks about Ericsson leaving the partnership, Sony Ericsson announced that their first quarter earnings report, due out on the morning of April 17th, is going to be negatively impacted by continued weak consumer demand and inventory reduction in both the retail and distribution channels. For the period, the company says they will have sold 4 million handsets at an average selling price of 120 EUR ($151 US) and with margins dropping, the partnership foresees a loss in the range of 340 -390 million EUR ($428-$491 million US). That figure does not include 10-20 million EUR in one-time restructuring charges. If Sony Ericsson does split up, they will be going out in a blaze of glory. Earlier this past week, we reported that Sony Ericsson plans on bringing the C905, equipped with an 8MP camera, to the U.S. during the second quarter.

source: Sony Ericsson

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5 Comments

1. Jyakotu

Posts: 867; Member since: Dec 12, 2008

I guess Sony Ericsson phones cost too much for people during these times of the recession. It's a shame, because I'm a fan of Sony Ericsson phones because they last long and even their lower end model phones have great features. Please...don't go Sony Ericsson. At least make a PSPhone.

2. Legion

Posts: 397; Member since: Dec 12, 2008

lol, psp has skype ya know!

3. heavybreathing

Posts: 276; Member since: Feb 26, 2009

THANK GOD. The ATT Warranty Exchange program thanks you Sony Ericsson. Though i'm worried, if Sony Ericsson goes away I might be out of a job in the Warranty center because we won't have any phones to do warranty service on.

4. att_agent

Posts: 96; Member since: Feb 26, 2009

HEAVY BREATHING is correct...... withou sony ercison soon a the 350a 580i w760 we will be put on the street soon!

5. mcmkone

Posts: 54; Member since: Mar 24, 2009

I Think it's more to do with the handsets being too big and poorly designed and then the software and OS is the same across all handsets... Their handsets haven't expressed innovation since the P910i... To be honest there's no hope for sony ericsson... the only decent handset they are lauching is their new walkman phone with 8mp camera....!!! the Iduo voda crap will not inspire many to buy it because it's OS looks and feels like a nokia express 5800... yes it's true symbian s60 software... trust me i've played with it and seen all their devices for this year and to be honest i'm not impressed by much at all... maybe this will be a good thing they splite so we can get some real mobile phones back into the industry again...! you would of never thought all this started from the psp phone agruement with sony ericsson and sony lol

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