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Sony Ericsson’s sales and profit are down - again
Whenever Sony Ericsson releases a press release about the market sales and profits in advance of the actual press release with the final quarter results, we know something’s not going that great. And well, Sony Ericsson just released one of those press releases.
It basically states there’ll be market challenges, and that these have impacted Sony Ericsson’s sales and profit in second quarter 2008. Sony Ericsson’s estimated amount of shipped phones in Q2 is at approximately 24 million units, and the average selling price is expected to be at 115 euros. The net income before taxes is estimated to be about break-even. Sad news, indeed.
Sony Ericsson claims that its sales have been negatively affected by the moderating demand of mid/high-end phones, as well as delays of new products shipped during this quarter. What does this mean? More low-end phones for us - yay…!
The final results will be announced on July 18 at 7.30 AM UK time (that’s 8.30 AM CET).
Filed under: Corporative, Market, Market share
(5 votes, average: 3.40 out of 5)
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It means that they couldn’t sell high end (smart) phones - because they have gained bad reputation with P990 etc - and coudn’t finish them in time - because they have problems with design/production/rollout/whatever, for whatever reason they do not tell. Maybe they are underresourced in this area?
MORE LOW-END PHONES? Yay… the market is already flooded with these phones and S E still wants to add up?! XD
As long as they don’t cancel the new Cybershot C905, i couldn’t care less
In the beginning of SE they only had a limited number of models and really started gaining marketshare. In the following years they kept releasing more and more different models (the Nokia way). I think they should consider limiting their portfolio and put more effort in marketing the separate models instead of promoting the walkman- or cybershotline. But then again. It’s not my company
what’s the meaning of this?
first, they announce that they see a chance to increase market share to 10%
then, they topped the J.D’s
and then this??? what the….
@Andy: The P990 is a 2 years old history, so I’m not sure this as influence on the current SE sales, nor can you blame the more recent UIQ phones: the latest ones (P1 and W960) did rather well, and so are the Gx00, I’ve heard.
An let’s be honest, most peole don’t know what those smartphones are (no surprise since they are never publicized).
Bad sales in the mass volumes are probably more influencial than the high end segment.
Naturally that they have this problems because the golden age of one producer of the smart and other cool phones are gone my gentlemen! Today everybody is producing every kind of phones (like a cars production of all kinds).
So SE consolidate in every aspect of production and be lucky! (fire up first some high rank managers which not predicted this and some engineers which are not able to quick construct reliable and power phones!) Also leave productions of (at least smart phones) to HTC which is a live example of above mentioned items.
“Bad sales in the mass volumes are probably more influencial than the high end segment.” Yes, but they themselves said in the announcement that the reason is the lack of sales and delayed products in the high end segment!!
they shud change c905 video at vga ff30
maybe if they didn’t take so long to release stuff and not such an insanely high starting prices, they could do better
(W890?!)
I think we’re still feeling the effects of the old CEO. When the new 007 movie comes out, I’m sure sales will increase (dunno about you, but I bought a K790 because of Casino Royale), plus the C905, X1 (if released here in the US–people will eat it up)…I think 2009 will see a turnaround.
i dont know what to make of this all i can truly say is i believe once c905, x1, and the new flagship w series(if cheap because w series never was for the flagship) they can make a huge turnoaround as they all have great build quality of course we dont know the new w but if the w980 is any indication it’ll be good, good luck se dont let the bad time get to ya!
Not surprised seeing how they treated k850i customers
init dude
@Duran what do you mean, how they treated k850i customers?
Can you be more specific? Cause from what i know, they actually released firmwares to update the phone. Where as LG did nothing to support their Viewty.
I hope you meant that in a good way, cause Sony Ericsson hasn’t let me down yet…
@bummy
No i meant it in a negative way. Aside from all the bugs in the first 2 firmware revisions, many users have experienced “BROD”.
I’m not sure if you know what this is, but basically me and many other users have had to pay €10 to 3rd party companies like Davinci to get their k850 fixed. (it would just brick)
Also, for 4 months i’ve had a phone which was unable to remember equilizer settings and needed daily reboots in order to keep the volume buttons alive.
And still, after 7 months, the phone is incredible slow while playing music and the camera driver is still very poor.
So ye, i haven’t recommended anyone a SE phone since i switched from k750 to k850
So we’ll get overpriced models this year to increase profit for SE?
All this just to cover up the K850 debacle.
I guess its because they are starting to make phones that are either superb only in music and in imaging that its having a negative effect on their sales and they pretty much focused only on bar forms which definitely limits their market. The solution to this is very easy they would only need to look back at their roots and what made them now! Like the s700, w900 and z800 phones. They only need to lead the way for something new like a 2.8″ vga resolution display!!!!