The slowdown in global economy is adversely affecting a majority of big names in consumer electronics industry and Sony Ericsson, with a notable loss of around $245 million, has joined the list of companies that suffered losses in the final quarter.
Sony Ericsson has been hit hard by plunging mobile phones demand and thereby posted negative growth of earnings for the final quarter for the fiscal year 2008; in addition, the company also held around 8 percent market share for the quarter.
These figures showed a huge turn around from that of the figures of euro 373 million profits the company registered a year ago for the similar period. Cumulatively, this Japanese Swedish joint venture has registered a net loss of euro 73 million for a year on a whole, as against the euro 1.1 billion profits posted by the company a year back.
However, in spite of these huge losses, the company claimed that the average selling price of its mobile phones were up from the previous quarter, at around euro 121 each, which is largely due to large sales of its high-profile models and favourable currency rates.
Citing the year 2008 as “tumultuous year”, company’s president, Hideki Komiyama said that the final quarter had been truly challenging, and showed pessimism towards market response in future by saying, “We foresee a continued deterioration in the marketplace in 2009, particularly in the first half”.
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After Sony dismal figures, news that Sony Ericsson is slipping in the red zone should not come as a surprise. To make matters worse, Sony Ericsson has been refused the right to use the PSP brand by its own mother ship, Sony. Will things get worse before they get better for Sony Ericsson?
Sony Ericsson swings to 4Q loss
(Wall Street Journal)
Sony Ericsson reports results for fourth quarter and full year 2008