After reported a slide in second-quarter pre-tax profits to €8m ($12.7m), down from €327m, same quarter with last year and €193m in the first quarter of 2008, Sony Ericsson is slashing up to 17 per cent of its workforce.
Sony Ericsson needs to change and refresh its portfolio and products without destroy its brand, because too many similar products in the market. The results were in line with a profit warning when the company said it would only break even because of disappointing European handset sales.
Even tough the sales in Asia is down, a shiny selling is in Europe. The sales are not always improve, but at least in particular season, the sales is up. Sony Ericsson wouldn’t copy the Nokia products, because the company has its own strategy and many things to be done to make it work. To prove it, the company will reveal new product on Tuesday, a new series for music freak!!!
In the second quarter of 2008, Sony Ericsson sold 24.4m units down 500,000 like last year. The selling price dropped 7 per cent to €116. However, the company forecast growth in the global handset market of about 10 per cent, with demand coming from emerging markets.
The company focus on high-end phones has left its handset sales exposed to a global slowdown, in contrast to Nokia, and the emerging markets and lower-end phones has helped it increase market share and lift sales.
Shares in Ericsson closed up 3.6 per cent at SKr72.30.
Via: Jamp
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