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HelpSomething of a mixed bag in Sony Ericsson’s annual figures, which were released today. On the face of it the figures don’t look particularly good with sales down from 11.244 billion euros in 2008 to 6.788 billion euros in 2009. Shipped units fell from 96.6 million in 2008 to 57.1 million last year and operating income plummeted from -113 million euros in 2008 to -1.018 billion euros in 2009. All that translated to a pre-tax 2009 income of -1.043 billion euros.
Sony Ericsson’s President, Bert Nordberg, talked about a refreshed portfolio as being key to the company turning itself around and in particular mentioned the X10, which many are viewing as the company’s best chance to catch up with rivals and inject fresh interest in the brand. Sales have suffered recently with the last quarter of 2009 seeing a 40% decrease year on year. Sony Ericsson put the blame for this on the shrinking global handset market, which saw an 8% decrease last year. However, they also pointed to “… a faster than anticipated shift to touch screen phones in the mid-priced sector of the market”. This may come as something of a surprise to customers and industry watchers given the popularity that mid-range touchscreen handsets like LG’s Cookie and Samsung’s Tocco Lite have enjoyed for more than a year now.
Throughout 2009 there had been speculation that parent company Ericsson was thinking of abandoning the joint venture with Sony, but both Ericsson and Sony contributed funding to the tune of 350 million euros to the venture, 50% of that figure coming from each parent. So far Sony Ericsson has used 255 million euros of that, but retain a 200 million euro fund for use over the next two years. Mr Nordberg pointed out that the restructuring costs and spending cuts were taking effect with Sony Ericsson’s debt being reduced.
Read the full statement here.
This article needs some major proof reading.
Title reads “1.043 billion loss” 1.043 billion of what?
“with sales down from 11.244 billion euros in 2008 to 6,788 billion euros in 2009.”
Six thousand seven hundred and eighty eight billion euros?
The report is written in Euros, in Millions. How is Sony Ericson making 6.7 THOUSAND BILLION DOLLARS!
This article needs some major proof reading.
Title reads “1.043 billion loss” 1.043 billion of what?
“with sales down from 11.244 billion euros in 2008 to 6,788 billion euros in 2009.”
Six thousand seven hundred and eighty eight billion euros?
The report is written in Euros, in Millions. How is Sony Ericson making 6.7 THOUSAND BILLION DOLLARS!
Whoops! That comma should have been a ‘.’. Thanks for pointing it out!
Whoops! That comma should have been a ‘.’. Thanks for pointing it out!
They SHOULD SUFFER HUGE LOSS for the fact that they sell each phone at a very high price.
A phone which costs them only $100, they sell it for ~$250.
In this regard, Nokia is FAR better than Sony. They offer their phones at really affordable prices.
For ex: My friend bought a Nokia 5230 (the new touchscreen phone) for only Rs.8600, i.e. only $172, on the other hand the Xperia(similar in Specs to the Nokia 5230 (though Xperia has lower resolution than Nokia 5230 and at only 65,000 colour screen,whereas Nokia 5230 has 360*640 resolution 16 million colour display)) is being offered for Rs.32000, i.e. ~$625 in India, why?
This Sony should see, that are their phones really worth for the prices in which they are being offered?
They SHOULD SUFFER HUGE LOSS for the fact that they sell each phone at a very high price.
A phone which costs them only $100, they sell it for ~$250.
In this regard, Nokia is FAR better than Sony. They offer their phones at really affordable prices.
For ex: My friend bought a Nokia 5230 (the new touchscreen phone) for only Rs.8600, i.e. only $172, on the other hand the Xperia(similar in Specs to the Nokia 5230 (though Xperia has lower resolution than Nokia 5230 and at only 65,000 colour screen,whereas Nokia 5230 has 360*640 resolution 16 million colour display)) is being offered for Rs.32000, i.e. ~$625 in India, why?
This Sony should see, that are their phones really worth for the prices in which they are being offered?
X1 has lower resolution than an S60 phone?
Now THAT’s news for me.
X1 has lower resolution than an S60 phone?
Now THAT’s news for me.
yes that’s true,X1 has lower resolution than almost every S60 Nokia phone. they have resolution of 360*640 with 16 million colours and Sony is nowhere close to it!!! and still the price is damn high….there are many more things in which X1 is lower than 5230 and see the price difference!!!!
yes that’s true,X1 has lower resolution than almost every S60 Nokia phone. they have resolution of 360*640 with 16 million colours and Sony is nowhere close to it!!! and still the price is damn high….there are many more things in which X1 is lower than 5230 and see the price difference!!!!
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