The credit crunch affected many companies and Sony Ericsson didn’t escape the downturn in sales either, according to Dick Komiyama, Sony Ericsson president. Sony Ericsson are reporting that for Q4 of 2008 sales were down a mighty 23% on last year, that  margins are down 15% on last year and they have stated that they had a net loss for the period of €187 million.

Sony Ericsson aren’t all that positive about sales in the first part of 2009 either as Dick Komiyama explained:

“In economic terms, 2008 has been a tumultuous year with world markets experiencing a serious downturn.  The mobile phone market has been greatly affected by this and as expected, the fourth quarter continued to be very challenging for Sony Ericsson. Our business alignment is progressing as planned, with the full effect of annual savings of around Euro 300 million expected by the second half of 2009. We foresee a continued deterioration in the market place in 2009, particularly in the first half.”

On a positive note for the company, despite the economic problems, Sony Ericsson have also announced that sales of their Xperia X1 handset and the Cyber-shot 905 handset have been successful and positive for the company.

Highlights that Sony Ericsson have outlined from the press release are that:

• Global economic slowdown leads to contracting consumer demand
• Previously announced annual Euro 300 million cost savings on track
  Initiated additional Euro 180 million annual cost savings
• Joined the Open Handset Alliance and developing new phone using Android Open Source software
• Successful rollout of Xperia™ X1, Cyber-shot™C905 phones and PlayNow™ plus music service

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This entry was posted on Tuesday, January 27th, 2009 at 1:23 am and is filed under Sony Ericsson, Xperia X1.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.