Sony Ericsson posts losses of €283 million
Expects handset market to shrink 10 per cent this year
Sony Ericsson has posted losses of €283 million (£243 million) in Q2 this year, with nearly every element of the financial report showing negative growth.
The main highlights (or lowlights) of the document show the company has lost €213 million (£183 million) in net income in Q2 2009, compared to a profit of €6 million (£5.15 million) for the same period last year.
The bad news is that restructuring charges actually dropped 10m in the last 12 months, which is usually the reason companies give for losing such a large wedge of cash.
Phones dropped
The number of phones shipped in Q2 2009 ended up at 13.8 million, well down from 24.4 million in the same period last year, although the average selling price of said handsets actually increased six Euros, from €116 (£100) to €122 (£104).
Sales were down 40 per cent year on year, something Sony Ericsson attributed to poor performance in key regions, particularly Latin America.
However, the company maintains it has taken measures to weather the storm, with plans to reduce operating expenses by €880 milion on track for completion next year. The company has already shrunk its workforce by 2,350 people, and believes new products like the PlayNow arena and application store will help it get back on track.
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Expected
"As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson," said Dick Komiyama, President, Sony Ericsson.
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.
"The new product portfolio that integrates communications, entertainment and social media applications should contribute to healthier topline development when shipments start later this year."
"We remain confident that the actions we are taking will further improve our financial situation and strengthen Sony Ericsson's competitiveness."
Sony Ericsson has stated that it believes it has a five per cent share of the global handset market, which is currently dominated by the likes of Nokia and Samsung.
Check out the full financial report (if that's your cup of tea) here.
Gareth has been part of the consumer technology world in a career spanning three decades. He started life as a staff writer on the fledgling TechRadar, and has grew with the site (primarily as phones, tablets and wearables editor) until becoming Global Editor in Chief in 2018. Gareth has written over 4,000 articles for TechRadar, has contributed expert insight to a number of other publications, chaired panels on zeitgeist technologies, presented at the Gadget Show Live as well as representing the brand on TV and radio for multiple channels including Sky, BBC, ITV and Al-Jazeera. Passionate about fitness, he can bore anyone rigid about stress management, sleep tracking, heart rate variance as well as bemoaning something about the latest iPhone, Galaxy or OLED TV.