Sony Ericsson warns investors of low profits
In a preemptive strike intended to avoid a shock during their upcoming mid-July earnings report, Sony Ericsson warned investors that their results for this quarter might be less than stellar. The company is expecting to break-even, which is a far cry from a highly profitable 2007. SE expects to report that it has shipped fewer than the 24 million handsets they moved during the same time last year. Additionally, they expect to report an average selling price of $181/handset, down from the $192 they were pulling in at the beginning of the year. So sad. While it might be easy to blame the general state of the economy, we’re more inclined to target the success of SE’s competitors with responsibility for its current woes. Handset delays, coupled with misplaced attention to mid-range phones and questionable designs are all contributing factors. That said, if they can actually get their act together and release the Xperia on time, the next earnings report might look a little different.
Tags: Sony Ericsson, xperia
I’ve heard that they are also selling the PS/3 at a loss, hoping to make money on game sales. Unforunately this has not materialized yet.
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Dude, it’s Sony Ericsson, not Sony. Sony Ericsson is half Sony, half Ericsson, all they do is make phones…..not PS3’s.
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SE had great 2006
but late 2007 products are bad
the long waited Sofia (K850) turns out buggy failure
hopefully 2009 will be their turning point
don’t forget to bring out AWS supported devices
gain 30 million customers is better than NOTHING
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well stocks are sliding as the cost of oil is going up last checked at !43 a barel combined with a weak doller wich in turn forces most consumers to cut expenses for gas , take into account most american wages are not keeping up with inflation.
i predict next moth when the iphone releases not as many devices will be sold as they were last year
apple fanboys may argue otherwise but SE Just like rum posted lower numbers than predicted
I would expect this trend to continue unfortunately. right now you have consumer confidence as folks are unsure about the economic situatiojn in play right now along with a bear cycle
ide say when thos retards in the do nothing congress especially the house get their act together and anounce the lifing of the domestic drilling ban
luke it or not politics an economics go hand in hand
the situation could also worson if oba,a wins the presidential because he has anouned he is raising takes doubling the corperte tax rate wich dose affect alot of payrolls this woul also hurt consumer spending too wich would leand to more of what we are seeing right now.
once the general electionis over and if macain wins consumer spending should go up especially if he taps rommney as well who is an economic turn around artist and a fromer venture capitolist. this in turn would increash conumer confidance and consumer spening as well.
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Point blank…SE is not putting out any hot phones over here in the states and they’re missing out on the amrican market. Now I am truly an SE fanboy. But all they’ve released here in the states are those crappy flips for the past three years. Then they finally put out that lil slider, i got one too, for my girl! It’s a fly lil phone with a fiyah OS but, it’s too feminine. SE is missing a serious chunk of profits by not manufacturing high end phones for the North American Market. if the K850, or the X1 never make it here either I wouldn’t be surprised.
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And delaying the release of the X1 doesn’t help either I guess… Just start to sell after trend setters/quick buyers have purchased an Iphone (of already the second generation) or an HTC.
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