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Yesterday’s appearance of the new Cyber-Shot C905a camera phone may mean prominent handset maker Sony Ericsson is putting on a brave face as the recession tightens its grip, but there’s no hiding the truth where performance numbers are concerned.
No light at the end of the tunnel for Sony Ericsson. Image: Sony Ericsson.
More pointedly, the joint business partnership between Sony Corp. and LM Ericsson looks far from healthy after the mobile phone manufacturer announced second quarter losses of $299 million USD, which is a far cry from the $8.5 million USD profit it posted during the same period in 2008.
“As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson,” said company president Dick Komiyama in a statement.
“Our focus remains on bringing the company back to profitability and growth as quickly as possible, and our performance is starting to improve due to our cost reduction activities,” he added.
Those cost-cutting measures have already seen Sony Ericsson culling some 2,350 employees since 2008 in an attempt to cut back approximately $1.2 billion USD in overheads.
Arriving as the fourth successive quarterly loss for Sony Ericsson, declining consumer interest in mobile phones evidently resulted in the company shipping just 13.8 million handsets between April and June, a significant year-on-year downturn of 43 percent.
Momentum has also taken a notable hit in terms of actual sales for the second quarter, with Sony Ericsson posting a performance of some $2.4 billion USD, a hefty 39 percent drop when measured against the $3.9 billion it amassed during Q2 of 2008.
The Tech Herald: Sony Ericsson C905a is all about the camera
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