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Sony Ericsson has said a slowing global market growth of mid-to-high end phones has negatively impacted the company’s worldwide sales.
The drop is likely to be clearly visible when the manufacturer releases its Q1 results on April 23. The slowing mid-to high-end market could hit Sony Ericsson more than any other manufacturer, as Sony Ericsson’s range focuses heavily on that level of handset.
The global market trend is at odds with the UK, where mid range handsets are currently experiencing a boom. This is largely due to UK operators pushing cheaper tariffs that offer mid-market devices as part of the contract.
Dick Komiyama, President of Sony Ericsson, said: ‘As discussed during our fourth quarter 2007 Media and Analyst Call, the market is proving to be challenging.
’This has been more pronounced in the mid-to-high end replacement sector of the market in Europe, where Sony Ericsson has stronger than average market share.’
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Posted: 2008-03-19 14:03:04
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Has Nokia or Samsung released their Q1 figures yet?
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Posted: 2008-03-19 14:07:52
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So this means SE should start concentrating on High-Ends?
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Posted: 2008-03-19 14:09:44
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This means SE execs needs to pull their fingers out of their arse and start making their phones better all round performers.
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Posted: 2008-03-19 14:13:34
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Full Press release:
Sony Ericsson Mobile Communications AB (“Sony Ericsson”) today announces that moderating sales growth of mobile phone units is expected to negatively impact net sales and net income before tax (“NIBT”) for the first quarter of 2008. Slowing market growth of mid-to-high end phones in markets where Sony Ericsson has a strong presence is affecting sales. In addition, certain component shortages for popular mid-priced phones have contributed to modest unit sales growth in the first quarter.
“As discussed during our fourth quarter 2007 Media and Analyst Call, the market is proving to be challenging. This has been more pronounced in the mid-to-high end replacement sector of the market in Europe, where Sony Ericsson has stronger than average market share,” says Dick Komiyama, President of Sony Ericsson. “For the last year, Sony Ericsson has been focused on expanding the breadth of its portfolio and developing its presence in new markets to lessen its historic reliance on the European high-end sector for growth. This strategy will continue, and our objective remains to become a top three player globally by 2011. As part of this strategy, we have announced fifteen new phones and introduced a new platform to the portfolio, Windows Mobile®, this year. We expect to start seeing a positive effect from these announcements during the second half of 2008.”
Although final results may differ, Sony Ericsson now plans to ship approximately 22 million phones during the first quarter of 2008 with an estimated ASP (Average Selling Price) of EUR 120. This is expected to generate net sales lower than the first quarter of 2007, and NIBT is estimated to be in the range of EUR 150 – 200 million due to increased R&D expenses as a percentage of sales. The increased investments in R&D are in line with the company’s strategy to meet future growth ambitions. In addition, Sony Ericsson currently expects gross margin to remain relatively stable for the first quarter of 2008 compared with the first quarter of 2007.
Sony Ericsson plans to announce first quarter 2008 results on April 23rd
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Posted: 2008-03-19 14:16:56
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On 2008-03-19 14:07:52, bavlondon2 wrote:
Has Nokia or Samsung released their Q1 figures yet?
Is Q1 over yet?
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Posted: 2008-03-19 14:23:45
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No but Nokia should be at the same stage of complicing these figures too just like SE are.
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Posted: 2008-03-19 14:25:19
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The consequence has to be - and I know you don't want to hear this - to expand market share on lower market segments, low-mid or mid-range phones to stabilize the whole market share. The whole high-end market sold less. If they want growth, they have to release
more lower level products.
Sure we are geeks, we want the highendest phones available. The average joe wants to text and make calls.
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Posted: 2008-03-19 14:43:13
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The least they could do is make sure that high end phones they give us are at least capable of matching the competition.
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Posted: 2008-03-19 14:47:37
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Where did goldenface's reply go??
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Posted: 2008-03-19 17:07:39
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