Sony Ericsson Expects Global Sales Dip In Q1

Posted by Michell | March 19th, 2008

komiyama_small.JPGSony Ericsson today announced that the moderating sales growth of mobile phones is expected to have negatively affected Sony Ericsson’s sales in Q1 this year. It appears there is a slow market growth in the mid to high-end markets, which is affecting Sony Ericsson in a negative way.

- As discussed during our fourth quarter 2007 Media and Analyst Call, the market is proving to be challenging. This has been more pronounced in the mid-to-high end replacement sector of the market in Europe, where Sony Ericsson has stronger than average market share, says Dick Komiyama, President of SEMC in a press release. For the last year, Sony Ericsson has been focused on expanding the breadth of its portfolio and developing its presence in new markets to lessen its historic reliance on the European high-end sector for growth. This strategy will continue, and our objective remains to become a top three player globally by 2011. As part of this strategy, we have announced fifteen new phones and introduced a new platform to the portfolio, Windows Mobile®, this year. We expect to start seeing a positive effect from these announcements during the second half of 2008, he continues.

At this moment, Sony Ericsson is expecting to have shipped a total of 22 million units in the first quarter of 2008 with an expected average selling price at 120 euros. Net sales are expected to be 150 - 200 million euros compared to 362 million euros the year before that. The low income is due to increased R&D in Sony Ericsson’s future strategy to meet growth ambitions. Dick Komiyama is still confident that Sony Ericsson Mobile Communications will be a top 3 player in 2011.

Final first quarter results are planned to be announced on April 21st.

Filed under: Corporative, Market share
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8 responses to “Sony Ericsson Expects Global Sales Dip In Q1”

Comments

  1. Yahya says:

    LOL! Top 3 Player.. I was thinking #1 SPOT for SE………. atleast #2…

    6:05 pm on 3/19/08
  2. scotsboyuk says:

    It’s good to hear that they are still projecting a position in the top three by 2011, but that certainly looks to be a big dip. Having said that, the first quarter isn’t the best time of year for sales so hopefully they can rebound later in the year.

    7:05 pm on 3/19/08
  3. Tigershark42 says:

    Soooo this implies more focus on the high end market in Europe again? (FIIIIIIIIIIIINALLLLYYYY)

    8:36 pm on 3/19/08
  4. theFanboy says:

    P5 and xperia will shake the market. bring them out soon

    8:49 am on 3/20/08
  5. Waco says:

    BTW, anyone knows when the P5 is going to be released?

    5:37 pm on 3/20/08
  6. Kenny S. says:

    What’s funny was after the news, SE’s stocks didn’t really take much of a dip… BUT Nokia’s stocks took a small dive.

    9:07 pm on 3/20/08
  7. goldenface says:

    Investors reckon Nokia is responsible for the huge drop in demand for high-end chips from Texas Instruments.

    http://www.cio-today.com/story.xhtml?story_id=1030063UCC1J

    This dip looks industry wide but SE will still post a healthy profit but it probably needs a breather after so many quarters of belt-busting growth. :)

    11:21 am on 3/21/08
  8. nipsen says:

    The low income is due to increased R&D in Sony Ericsson’s future strategy to meet growth ambitions.

    Ye-es.. all those expensive MacWorld- analyses and Microsoft engineering licenses must be busting their nuts. But hey(!) - it’s all going to pay off when the market- focus is “diversified”, and there’s less dependency on the european medium to high- end market, obviously.. Surely then they can finally ditch UIQ altogether, and start to make glorified picture- viewers, just like the other big players! Well done, Komiyama.

    4:37 pm on 3/22/08

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