The ongoing economic downturn seems to have taken a heavy toll on the revenue figures of Sony Ericsson, with the mobile phone giant reporting a 42 percent drop in sales in its third quarter results as compared to the sales clocked in the same period, a year back.
For the quarter ending 30 September this year, Sony Ericsson has reported that its sales figures stood at €1.6 billion which significantly low than the third quarter sales figure of €2.8 billion that the company achieved in 2008.
Quite expectedly, with revenues going down the hill, Sony Ericsson has suffered a major operating loss of €193 million while the figure for net losses stood at €164 million.
However the losses mentioned by the company were lower than those predicted by some analysts who had painted a bleaker scenario.
The company though hopes that things will look up for it near future and it is pinning its hopes on two of its upcoming mobile handsets namely Satio and Aino.
Giving at hint at how the management at Sony Ericsson plans to take the company out of its poor financials, Dick Komiyama, the outgoing president of the company mentioned “We have cleared channel inventories, and have continued to realign internal resources and improve efficiency. We have also arranged external financing to strengthen the company’s financial position.”
Sony Ericsson is facing some stiff competition from other major players and its lack of compelling smartphones has left it vulnerable at the upper end of the market. With Motorola, Sony Ericsson could well be one of the major losers in the mobile phone market in 2010.