It wasn’t that long ago that Xperia X1 owners in Korea were making complaints about the handset from Sony Ericsson, after waiting so long for it. However it seems the handset has been a hit, with nearly 24,000 sold in the first three months. Korea had high WIPI standards, which meant many phones, including smartphones like the X1 and HTC Diamond, were hard pushed to be launched in Korea and took some time for them to arrive. A month later after the X1 was released, WIPI standards were relaxed, but some companies are still struggling to bring their handsets to Korea. The X1 was also the first phone in Korea, that didn’t have the WiFi removed for market, which is sure to be one of the reasons for it’s success. Along with the initial complaints, the X1 also had a hefty price to contend with for success, but it clearly didn’t stop the sales of the X1.

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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

The Financial Times has published an article reporting that Sony Ericsson have recorded a Q1 net loss, it’s first loss in more than five years.

Sony Ericsson have suffered as sales of handsets have been lower and considering the ‘financial crisis’ in the world currently which has created a lack of consumer confidence, Sony have managed to come through the period less damaged than they could have been due to their cost reducing methods.

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