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Quote:
On 2005-04-18 15:12:31, mario2002 wrote:
I saw this coming a few months back already ! Read some of my posts from that time if you don't believe me.SE financial position is weakening by the month.They urgently need: 1. EDGE line up. 2.S60 support and 3.A upgrade of the Pxx lineup ! Go ahead criticise me again, but look what the numbers say.A few months back SE also sliped backwarts as a cell manufacturing company ! Greetings from South Africa. Mario



This message was posted from a Nokia 7650


From what I see, the 3 point mentioned won't be the main cause for
the poor performance.

having a S60 phone meaning SE have to share their income with Nokia since it involve royalty....plus you are asking SE to partially abandone the stuff from E/// their owner? Then P9xx is such a high end phone which do offer very high ASP/ average price but might not have an impact on volume shipped. I have no comment on EDGE coz I do hope they will bring out EDGE soon.

ASP or average price which reflect their profit margin drop is mainly because all the low end phone introduced in Q1. J200 and K300...plus as times goes by...maturing product like S700 and K700 cannot offer high profit margin due to the short life cycle of mobile phone.

Of course I don't want to say with K750 and Z800 launching in q2 can change it but if they cannot deliver a good mixture in every quarter, you will not be suprise to see SE have a fluctuating result coz the trend is so clear tht SE is so strong in mid range and high range product but sucks in the low range segment.

So when volume shipped is low and profit margin dropped, you see bad result on net income and ASP.

The next thing I notice is q1 o4 and q4 04 when comparing to q1 05 show tht the lastest result is very bad....you have to consider tht in term of growth in %, those previous quarter is very strong as q1 04 was the time when T610 and T630 are still selling like hot cakes while q4 04 is the normal christmas season.

Another reason you notice a decline on net income also due to their expenses is growing.....some of you might have notice SE homepage now have a link to new job offer...this didn't happen one yr ago.
plus their sponsorship to WTA...all this contribute to more expenses.

BUT IF THEY REALLY MAKE A WRONG MOVE, you should be able to see even worst result in Q2 and it will be the time we post more rough comment to their performance....I do hope this will not happen.
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Posted: 2005-04-20 19:08:32
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nice comment mate.
i don't think SE will make a bad move in Q2. alot of phones are shipping, and they've already got an acceptable stock of K750 and other phones.
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Posted: 2005-04-20 19:13:40
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We are in the middle of Q2 now and the only phone out is K300. I suspect this quarter will not be so good.
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Posted: 2005-04-20 19:27:00
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i think your right q2 will be much the same as q1 as the new phones will barely hit the main markets in time to get any meaningful input into q2 figures.
q3 will be the interesting one as by then the k750 should have hit the main european markets
the figures are very poor i think and shows that the range isnt there yet. its a not a step forward at all, but this year could be a step forward if the phones are out on time and aint full of early firmware bugs then they good make up the ground thats been conceded
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Posted: 2005-04-20 20:12:03
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No lah Golden face

its only middle - End of April hehe....we will know whether they can make shipment of K750 on time like everyone speculated.

If they have it out around mid may then it is problem for their q2 result
coz it cannot make a big impact for Q2....it will drag down their cash flow...well having lack of cash flow meaning they will not be able to expand all their developement programme.

Next thing for me to look forward is on a smaller drop in ASP or average price....some might think the drop is good as it mean retail price drop....however in long term, it mean profit margin for SE get slimmer and they will face difficulties one day when they have high volume shipped in one quarter but still they can't make profit.....it will be like the situation in Siemens mobile....they have shipment tht is higher than SE in 2004 but look at their result...they have losses....well it just look like the problem of high volume but low profit margin.

To date, beside Samsung or maybe LG, SEMC is the company tht have a very high ASP....hpoefully they can maintain tht but at the same time come out product with good quality and features.
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Posted: 2005-04-20 20:22:22
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If only SE can do the way Sony launch their cyber shot and walkman (flash base mp3) or like how Apple launch their product.

the wait is killing us.

But i notice this could be a trend they are moving...coz I used to remember during 2000 and 2001 we used to wait till Q3 before seeing any new Ericsson or Sony Ericsson product but these day they are moving towards end of Q1 and mid/end Q2....this is the time frame they have after recovering from losses.

I do hope things pick up now with them earning so much thru T610...else I will doubt where those extra income have gone to?
As I always think having more $$$ will allow them to do move in developement (more programme running simultaneously or more RnD etc etc)

The next thing I am curious on is the price....will they make it lower since this phone allow music purchase/download which can lead to another source of income
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Posted: 2005-04-20 20:29:31
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bump for Goldenface
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Posted: 2005-06-27 19:55:16
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Thanks M.

Well Q3 is almost upon us, the K750 has been out for about 3 weeks but has it flew out fast enough to make a difference to Q2 figures?


The extra W models being released will make a difference but won't be hitting the shelves for a while yet.


@maki. 9.4 million sounds a lot of phones doesn't it?

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Posted: 2005-06-27 21:11:00
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