Sony Ericsson announces Q2 results – what a joke…

If nothing happens, Sony Ericsson's headquarters will soon be invaded by angry Sony Ericsson fans

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.

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92 Responses to “Sony Ericsson announces Q2 results – what a joke…”

  1. Brian says:

    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!!!!

  2. Brian says:

    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!!!!

  3. NightBlade says:

    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?

  4. NightBlade says:

    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?

  5. Michell says:

    Dead serious.

  6. Michell says:

    Dead serious.

  7. Dan says:

    Not only bye bye 2 Beibei. Also “Bye Bye” to Sony Ericsson… SE lost the game :-(

  8. Dan says:

    Not only bye bye 2 Beibei. Also “Bye Bye” to Sony Ericsson… SE lost the game :-(

  9. unkown says:

    The money gone to SAP consultants..hi..hi…

  10. unkown says:

    The money gone to SAP consultants..hi..hi…

  11. ares says:

    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.

  12. ares says:

    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.

  13. Cedric says:

    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.

  14. Cedric says:

    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.

  15. sicksadconsumer says:

    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…

  16. sicksadconsumer says:

    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…

  17. Cedric says:

    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… :-(

  18. Cedric says:

    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… :-(

  19. Chris S says:

    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

  20. Chris S says:

    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

  21. cliosguy says:

    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!

  22. cliosguy says:

    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!

  23. archie says:

    Fingers crossed…

  24. archie says:

    Fingers crossed…

  25. sjaylon01 says:

    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..

  26. sjaylon01 says:

    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..

  27. Chris says:

    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.

  28. Chris says:

    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.

  29. Chu iAN says:

    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!

  30. Chu iAN says:

    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!

  31. archie says:

    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.

  32. archie says:

    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.

  33. archie says:

    if michell is dead serious bout quitting…I dare him to close this site all together!

  34. archie says:

    if michell is dead serious bout quitting…I dare him to close this site all together!

  35. eternal_wind says:

    Sony Ericsson never wanted to hear, consumers and their fans demands. Pity…

    It is obviously Sony Ericsson’s fault.

    WAKE UP!!!!

  36. eternal_wind says:

    Sony Ericsson never wanted to hear, consumers and their fans demands. Pity…

    It is obviously Sony Ericsson’s fault.

    WAKE UP!!!!

  37. stevie j says:

    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!!! 

  38. stevie j says:

    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!!! 

  39. Brian says:

    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!

  40. Brian says:

    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!

  41. Todd says:

    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

  42. Todd says:

    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

  43. Cem Celebi says:

    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 :)

  44. Cem Celebi says:

    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 :)

  45. Cem Celebi says:

    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???

  46. Cem Celebi says:

    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???

  47. Peter Getkahn says:

    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.  

  48. Peter Getkahn says:

    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.  

  49. Muhammad-Oli says:

    @Michell: Wow, what a post!

    *starts slow clap*

  50. Muhammad-Oli says:

    @Michell: Wow, what a post!

    *starts slow clap*

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