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Sony Ericsson announces Q2 results - what a joke…
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
(9 votes, average: 3.44 out of 5)
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Yeah, Sony Ericsson is losing the game, they should’nt bother releasing more low-end phones as it only disappoints us fans, we do not need the “do-some-basic-phones” cause the market is already flooded with that, WHAT WE WANT IS CUTTING EDGE TECHNOLOGIES COMBINED TOGETHER, just like what other companies are working on. WAKE UP SE!!!!
Seeing Michell so pissed at SE sure isn’t a good sign. This is bad. Really bad.
“If not, then I don’t have any plans of staying with this company.” -are you serious?
Dead serious.
Not only bye bye 2 Beibei. Also “Bye Bye” to Sony Ericsson… SE lost the game
The money gone to SAP consultants..hi..hi…
I think most SE fan feel the same. It seems its time to move on, if nothing changes. And Dick is really a dick as CEO.
They stopped innovating after K750/W800/K800… Cameras on recent Walkman devices are far behind what competitors like Nokia or Samsung offer for lower prices. Next Walkman units will feature great cameras and excellent music capabilities but they now have to make much much better to convince people. UIQ is dying… It won’t be able to compete against “SymbiAndroid”, Windows Mobile & Mac OS X Mobile. Only one professional device by the end of 08… Xperia should have been released before : even HTC is already making better this summer with their Diamond Pro.
I’m sad, sad because only a major acquisition can now help them recover.
HTC (their gate to business users), Motorola (their gate to the USA), whatever : they need to do something to show that they can innovate and offer the best products on the market. No more compromises between pictures, music, video, etc.
Also sad because people will lose their job, around 2000 this year.
They only get what they deserved… What a joke, SE could provide advanced technologies thanks to their presence on japanese market, instead they treat us - poor members of “the rest of the world”- like dumbasses willing to pay 700$ on retarded phones…
I forgot to mention that their “business” units are the only smartphones on the market to be incompatible with either EDGE or HSDPA. Summer of 08 (HTC 3600 is now 2 years old !), no UIQ 3.3 HSDPA device. Only old 3G…
i hate to say this i wanted to love se i really did but then they went and cancelled bei bei, paris , and alicia? are you shitting me? that was the best stuff they had all year outside of
c905 and xperia and they let it go…..but this is the oddest thing as sad as it is to say this samsung is the new SE i really mean it they have the samsung omnia and primera coming out and those are the only 2 phones i currently am interested in buying soon SE is taking to long as well to release there flagship phones by the time c05 comes out i’ll already have a primera…what a sad day this has become but i wont give up on them….for now
its sad definitly, im currently looking the reviews for the N95 8GB, hoping that with the comming of the N96 the N95 get a lot cheaper
SE needs to wakeup and release a “new K750″ and a “new W800″ RIGHT NOW!
Fingers crossed…
Like most of you, I too have grown weary of the SE delays and inability to keep pace. I am considering jumping ship to a new manufacture who cares about providing timely innovation. I am aiming for the Omnia..
I was stumped on buying either tha G900 or N82 for a very long time….but when G900 came out at that unreasonable price, my mind was made up instantly. I only paid $420 USD for N82 and get much more phone than a G900 with minimal stuff. And I still got a 2GB card with it while I get nothing with the G900!! There is just too much wrong with their price/feature ratio.
poor SE, their product line ups are getting kinda shitty actually. Who in this world wants a phone that features radio functions only?? with shitty cameras in walkman phones and few innovations in camera functions…no wonder SE is down in the numbers.
There’s a reason for SE’s success with the k750 and w800 models—it incorporates the best of both worlds (at that time).
I agree with the rest of you here, SE is losing it. They’re focusing too much on “aggregating” their products and splitting the target audience… There’s NO one new phone that can meet the demands of those users who want the best of camera and walkman.
Besides, the pricing of SE phones are really quite expensive. Are they trying to make their products go on the “premium” line? I don’t think SE can achieve that or afford that. There are tonnes of phone makers out there who are more than willing to replace SE in the market segment they left behind…
Knock knock! SE! Time to wake up!
hey chris, you’ve made a wrong comparison bout the price of of G900 and N82. N82 came out last year with high price too. You making it sound they came out at the same time.
if michell is dead serious bout quitting…I dare him to close this site all together!
Sony Ericsson never wanted to hear, consumers and their fans demands. Pity…
It is obviously Sony Ericsson’s fault.
WAKE UP!!!!
I think the best way that se can get out of this rut is to adapt EXISTING technologies in their Japanese phones to the global market. This way, R&D wouldn’t cost as much, and they could deliver new phones based on these technologies faster. Not to mention these phones would totally blow away finnish bricks. Or better yet, they should release something that would catch the world’s attention. (*cough* not xperia *cough*) I’ve owned a lot of phones from nokia, motorola and sony ericsson. And from my experience, the phones that I enjoyed using most are from se. Its sad to see that a company that is full of synergy before is losing its touch. PLEASE SE WAKE UP! I DONT WANT TO BUY A FINNISH BRICK ANYMORE!!!
I suggest they would release products like UIQ CYBERSHOT with higher video resolution and frame rate or a P-SERIES with a quality camera and XENON FLASH, gps and accelerometer. I would love to see them be brought to life in the market before the year ends. SIGH!
It truly saddens me to see SE in such financial woes but at the same time I cant say that I didnt see it coming. How many phones did you guys buy over the years that were essentially the same model?( w810…w610…w850..etc) My first SE was the W800i and it was a thing of beauty for its time. That was three years ago and they are still pumping out basically the same phone and at somewhat bloated prices. I bought a w910 and paid 370 for the damn thing. A camera that doesnt have autofocus or a flash at that price? And at this day and age why cant a music oriented phone have a freakin 3.5mm jack? As much as I love the pop port thingie on SE phones its definitely lost its luster to me. Now you might think this rant comes from a sony ericsson hater and I say nay. Ive bought 10 SE phones in the last 3 years and have loved each and every one of em but I cant ignore the cracks in the armor concerning how SE conducts their biz. If I could steer the rudder of this once cutting edge company I would do the following.
1.A 3.5 headphone jack in every Walkman phone.
2. A dedicated Sound processor for every phone intended to be used as a mp3 player. None of this “done through software” tomfoolery!
3. Quadband,quadband, quadband! In their defense theyre getting better but how many versions were there of the k790/k800? And while were at it, support for all EDGE and 3G networks universally! Would that be so hard?
4. WiFi incorporated into more than just the smartphone line. We can get wifi and its antenna on a chip and cheap nowadays (think PSP or even the EYE sd memory card with wifi built in) why the hell cant we make it more of a standard on phones? Can you imagine a Walkman phone where you can download tracks via wifi from your pc or a decent music store?
5. I would kill a busload of babies to see SE’s try at a glass touch screen phone that ISNT a smartphone.
6. I tell you the biggest thing that gets to me. Sony Ericsson of Japan. You have cybershot phones that have OPTICAL ZOOM. You have phones that posess VGA or better quality screens. Theres a phone that has the entire original game of Metal Gear Solid on it fer chrissakes! Why cant they adapt these to the American and European markets? Why does SE treat the rest of the world like an unwanted stepchild?
Sorry for this rant but I had to get it off my chest. I hate the title “fanboy” but I love me some Sony Ericsson and it pains me to see them do this much bad business
If g700 had edge i would instantly buy it. Here in turkey we still do not have 3g, thus edge is our best option. Turkey has a population of 70 m, and number of mobile phone subscriptions is about 65 m (because of multiple subscriptions). Wake up SE!! Almost everyone in Turkey has one nokia phone. IT used to be we all had se before…Just put edge on your g700 and see what happens
Nokia 6120c has been selling like chocolate here in Istanbul; it has edge, 2.0 mp camera, full smartphone, at the price of 200 Euro. We purchased 270 units of nokia 6120c for my company; because the phone is cheap (for a smart phone), fast and we can open our office documents with symbian. How about Sony Ercisson? Where is your similarly priced smart phone???
I’ve been using a W800i with a 2GB memory card for around 2 years. It’s got a good Camera / Radio / Music Player and it simply works. I’ve wanted to buy a new Sony Ericsson phone for a while, but frankly the company hasn’t produced anything significantly better. All the current phones give me is a new memory card slot (SO I HAVE TO BUY ANOTHER CARD) and a few extra megapixels. The Phones are great, but they are the same as 2 years ago. Wi-fi is the killer application, as soon as Sony Ericsson wake-up and put this in a package that looks good and is affordable; Sony Ericsson will continue to lose money. I’m in the UK and we’re still waiting for the launch of the G900i, I’m sick of waiting and I’m now thinking of buying a N78. The Nokia phone is badly designed, but it has got all the functions I need and I can afford it.
@Michell: Wow, what a post!
*starts slow clap*
I think Q2 financial results is still the effect/result of their new strategy. Only small number of products (w350, w760, w890, z770 and z555) were release in Q2 and even some of it are not yet available in other countries (like w760 and z770) . We should wait for the results of Q3 where they release some ‘bit’ high end great phones (c902, c702, g900, g700, w980). But PLEASE SE, don’t blame us or market your low Q2 results.
…I cant believe what I am reading. You guys are complaining on the best manufacturer that they are releasing only low-end phones, that they doesnt have enough features, blablablablabla? What can you say about the C905? Low-end? No. Many features? Yes. High price? Not for a such good phone. 8.1 mpx will also be a world-first.
T610, K750, W810, K800 and now C905. Sony Ericsson rules.
I dont care if they release many low-end phones, as long as they release pro phones like C905.
I also want to say that Nokia sucks. I would never in my whole life buy such a piece of crap, I hope you guys wont either!
Regards,
Sony Ericsson Fanboy <3
[ENDRANT]
Not a Nokia fanboy but i’m a Sony to Nokia user. But the Nokia Nseries has everything in a phone it’s a perfect phone it has mostly everything that you would want in a phone even though there isn’t that much support for american 3g unless you buy the specific model.
Nokia has made a multimedia phone while Sony is doing a “type” phone like walkman.. cybershot.. if they put it all into one phone aka. making it a true High-end phone I’m gussing people will want that.
Sony has a great interface, and great designs, much better than nokia its just the specs of the phone that make it dirt : (
yep..like i said in the previous “SE is going down” thread: i’m not surprised.
When i had the k750, i recommended SE to everyone..what a great phone..!(unfortunately my joystick died, but still).
Now with k850 and it’s shitty firmware, AND having to go through the whole BSOD thing without SE giving a damn, i’m definitely not recommending SE to anyone.
In fact, my next phone will be a nokia or HTC.
Unless their X1 and C905 do REALLY well, i think SE are NOT going to be a happy company in a long time
Well Michell you’ve certainly come a long way since the days you said you were tired of the whole P990/smartphone debacle…..;-)
It stands to reason that when a company’s flagship product(s) are below standard, that the malaise will spread to the rest of the product line.
As it has.
SE have ignored what their customers are asking for in terms of good phones, and they’re reaping the results of that.
To quote the closing paragraph from the now-utterly-redundant Open Letter :
“SE enjoyed a large and loyal client base thanks to it’s previous state-of-the-art (smart) phone offerings. Ongoing and genuine effort by SE to cultivate this relationship would be mutually beneficial”.
I can’t see them changing course anytime soon, without a radical change of mindset (as in actually opening their eyes to what is happening in the markets and the online communities.)
Otherwise there’ll be another profit warning next quarter, and the next…..
Well, good luck.
i hope SE is reading this…
It makes no difference whether or not they are reading this.
Posts like ours have been aired online for the past year or so in forums which we are assured SE reps ‘read’.
The only thing SE listens to is their bottom line - in this case their dwindling profit margin.
Sadly they mess that up as well by drawing the wrong conclusions from it….like blaming their dwindling profits on everyone but themselves.
Just in case someone from SE with a brain between his ears is reading this…the market for high end phones is thriving, actually….it’s just that nobody wants to buy YOUR ‘high-end’ offerings.
So I heard Sony wants profit to die so Ericsson will disappear and the brand will just be called Sony!!!
aqualung15 says: Just in case someone from SE with a brain between his ears is reading this…the market for high end phones is thriving, actually….it’s just that nobody wants to buy YOUR ‘high-end’ offerings.
More true words have not been said. As Ive said I love SE but they really need to get their act together. Its not going to save them if they decide to make nothing but low end offerings. They need to up the ante across the board
I used their phones when they innovated (P800 and P910) but today everybody is innovating and improving their phones!
SE would be lucky if survive in this cruel world of new ideas (HTC) and quality (Nokia)!
I told this terrible trues but some people ask me after that what I am doing in this forums!
In one year this company will melt down like it raised from very suspicious firms (Ericsson and Sony in the phone business in London w/o serious factory, do not tell me)
In their wish to grab lot of money in quick time they forgot that this apparatus is in first communication device and for that reason it must satisfy two main facts: very handy communications and ultra mechanical and el. reliability. In both they failed!
Good bye SE!
Is it really True? that it will be a “Goodbye SE” and “Hello Sony” ? So this means, we will now be getting THE REAL DEAL from Cybershot, Walkman, Bravia, Handycam Brands. I would love to see the real power of the brands be ported to phones. Sweet Deal =D
GOOD LUCK SE
Those results are crap, what have happened after the ground breaking innovations 3/4yers ago? seems like i’m going to end up a prodigal son to my originally prefered brand
sony wants to dissolve sony ericsson? Hmmm… Anyhow, since sony can come up with handsets that has bravia technology behind it, i’ll be willing to hold an axe to split them up. Now’s the time!
I’m a SE fan since t310. I still own W800 and am very satisfied with it (upgraded, expanded and still perfectly working). I haven’t bought anything new cos the subsequent models weren’t much of a revolution. In fact W800 has nice design, excellent battery life, sound quality, good camera and still some top-notch specs (not bad for a 3 yo phone..). For instance I think w980 as a sleek design, but camera is just disappointing. And so do many other models. That’s what keep consumers from buying new models. We don’t really feel the need to throw away money for partial improvements.
It’s just a shame that because of dumb managers’ shitty strategies thousand of people will lose their jobs (…neither do we get a decent model).
Disappointment can be felt all around and it’s sad to read such a statement from the owner of this wonderful blog (way to go-dont’ give us up).
Let’s cross fingers…
now that i think of it… a sony phone wouldnt be so bad…
My speculation is that, this is whats happening now:
Sony ericsson communications JAPAN = SONY (releases phones in Japan)
Sony ericsson communications AB = ERICSSON (releases phones for the rest of us..)
Since sony had already solved the telecommunication problems that they had before. Through the venture. Maybe, just maybe, they are trying to do this:
Sony communications international = SONY (sans ericsson)
This should explain the rumors that the PSP phone is going to be produced by sony alone
Is it common knowledge among the English-speaking world that SE Japan is now only supplying NTT Docomo? It feels like they shrunk their ops cause they didn’t have the chops to compete with people like Fujitsu and NEC and even panasonic, which are all very aggressive with putting new features into their handsets.
I wouldn’t have thought SE Japan is the one to look to at all at this moment…
come what may…i still trust sony ericsson
I still remember the day when Sony ended their Clie line of Palm PDAs, when they were the best developer for Palm. When the numbers don’t add up for Sony, they would chop off a product line just like that.
This is not a matter of trust anymore; if they can’t produce something worthwhile, I can very easily switch to something better.
Regarding their portfolio, I don’t really care whether they announce hundreds of low-ends as long as they announce them with just a few high-ends like X1 and C905. And maybe they learned that Walkman branded phones should have a good camera as well and they’ll start to sell phones like W902, which I really like by the way. I wish SE all the best and Q3 results are possibly going to be much much better, C902 is becoming quite popular…
Hi,
I was just reading the post and I have to confess something… I was a SE fan for long years, started with a T610 and finished with a w900i, really a great phone when it was lauched. I was expecting for long SE to release new high end phones with some exclusive features. But I was tired of wainting and saw all my friends switching to other brands. And, last July… I bought a iPhone 3G… Couldn’t wait anymore for the X1 to be released (at which price ???) or the delayed Paris. I hope I will one day come back to SE but it’s such a mess in their product line that I have a lot of doubts.