If nothing happens, Sony Ericsson's headquarters will soon be invaded by angry Sony Ericsson fans
Sony Ericsson today announced its Q2 financial results. During the second quarter of 2008 Sony Ericsson achieved break-even results, and once again declared that the market is “proving challenging”. This has to be the third time they’ve come up with those ground-breaking statements. I’m guessing that’s what their “continued R&D investments” have been used it, as it most certainly wasn’t used for researching and developing anything phone related.
Another ‘highlight’ in Sony Ericsson’s press release about the Q2 financial results is the announcement of Symbian Foundation. To me it seems like this was only added because there was nothing just slightly exciting left for the PR crew to add.
So, let’s get to the results. They’re bad - really bad.
- During the second quarter of the year, Sony Ericsson just managed to ship a total of 24.4 million units; that’s lower than the total amount of shipped units in Q2 2007. YoY change: -2.05 %
- The sales brought in a total of 2,820 million Euro. Once again, significantly lower than last year’s sales. YoY change: -10.35 %
- The gross margin fell from 29.2 % in Q1 to 23.1 % in Q2. YoY change: -28.14 %
- The operating income has turned negative, and is now at -2 million Euro. YoY change: - 100.63 %
- The net income is now down to 6 Million Euro. YoY change: -97.28 %
Isn’t that just pathetic? Sony Ericsson yet again blames the market for being challenging - did I say that before (?) - and once again don’t think the mid/high-end markets are the ones to go for. Once again, my guess is that they are looking at their own facts and numbers, and found out their mid/high-end devices are simply not popular. I wonder why…
I guess faithful Sony Ericsson owners can start getting acquainted to getting larger and larger amounts of low-end phones.
- 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, says Hideki Komiyama, Sony Ericsson’s President in the press release.
- 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, he continues.
What he fails to mention is that this will mean up to 2,000 Sony Ericsson employees will get sacked. Such a pity.
I sincerely hope this is the kick in the behind Sony Ericsson needs to rise again. If not, then I don’t have any plans of staying with this company.
You can read the full joke over here.
Filed under: Announcement, Corporative, Market, Market share, Videos
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Posted by Michell | August 24th, 2008 
(7 votes, average: 4.43 out of 5)
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