21 July 2009

Sony Ericsson Q2 summarizes financial loses more ground

Last night was a restless for a lot of accountants. Just as expected, Sony Ericsson today announced their Q2 financial results. The time is always more severe and more severe for them it seems, the number of units shipped decreased by 5% over the previous quarter (and thus were not spectacular, too).

The good news is, the average selling price fell from EUR 120 to 122 led by a more favorable product mix, which led to 4% higher gross margin. This was not enough though - the net loss is was 213 million euros (the fact that this is better than the loss of 293 million the previous quarter is almost any consolation). The reason for this, according to Sony Ericsson provides the challenge in market conditions, with Latin America is identified as particularly difficult.

Sony Ericsson is trying to manage the situation, their plans for spending cuts are on track and restructuring charges related to these programs are within the specified limits. From the lower costs of these programs included reduction of the global workforce by 2350 employees.

The new portfolio - with the Satio, Aino and Yari at the front - are expected to contribute with Sony Ericsson performance, especially with their new PlayNow arena, which will be expanded with functionality app store next to the distribution of films and music.

With Sony Ericsson estimated its market share is slightly above 5 percent. The company admits that they need to turn things around and grow economically if they are to retain their status level manufacturer.


Article By: GSM Arena

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