Losses continue for Sony Ericsson

The company needs more new phones to turn around its fortunes, analyst says

Mobile phones manufacturer Sony Ericsson Mobile Communications' third-quarter sales dropped by 42 percent compared to the same period last year, while its net loss increased sixfold.

Sales for the third quarter were €1.6 billion (US$2.4 billion), compared to €2.8 billion a year earlier. The company's net loss for the quarter increased to €164 million from €25 million a year earlier, while the number of phones sold dropped from 25.7 million to 14.1 million, it said Thursday.

Between the second and third quarters, Sony Ericsson increased the number of phones sold by 2 percent or 300,000 phones. But that still trails the 7 percent increase for the market as a whole estimated by Nokia, and the average price of the phones Sony Ericsson sold dropped €8 between the second and third quarters. Sony Ericsson has also cut its losses by €49 million compared to the second quarter.

Sony Ericsson has high hopes for three new phones now going on sale, the Satio, the Yari and the Aino. The phones are a step in right direction, but they won't be enough to turn around its fortunes, according to Carolina Milanesi, research director at Gartner.

The company needs to follow up the introduction of these phones with more new devices, according to Milanesi. Its portfolio still lacks a cheaper phone with a QWERTY keyboard. That Sony Ericsson stopped making Blackberry-like phones just as that form factor started to get hot was a big mistake, Milanesi said.

Join the PC World newsletter!

Error: Please check your email address.

Tags Sony Ericssonmobile phonessmartphones

Struggling for Christmas presents this year? Check out our Christmas Gift Guide for some top tech suggestions and more.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?