News Forum Phone database

> New Topic
> Reply
< Esato Forum Index > Sony Ericsson / Sony > General > Sony Ericsson continues to invest for future growth Bookmark topic

Sony Ericsson continues to invest for future growth


23 April 2008

Q1 Highlights:
• Year-on-year volume growth of 2%
• Income before taxes at higher end of forecast
• R&D investment continues to expand portfolio and addressable market
• New sub-brand XPERIA™ added to portfolio

The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the first quarter ended March 31, 2008 is as follows:



Q1 2007 Q4 2007 Q1 2008
Number of units shipped (million)
21.8 30.8 22.3
Sales (Euro m.)
2,925 3,771 2,702
Gross Margin %
30.3% 31.8% 29.2%
Operating Income (Euro m.)
346 489 181
Operating Income (%)
11.8% 13.0% 6.7%
Income Before Taxes (Euro m.)
362 501 193
Net income (Euro m.)
254 373 133
Average Sales Price (Euro)
134 123 121
121

Units shipped in the quarter were 22.3 million, a 2% increase compared to the same period last year and in line with our March 19, 2008 interim announcement of 22 million units. Sales for the quarter were Euro 2,702 million, a decrease of 8% on a year ago due to slowing market growth in mid-to-high end phones in markets where Sony Ericsson has a strong presence. Gross margin was one percentage point lower than Q1 2007, reflecting a less favourable product mix. Income before taxes for the quarter was Euro 193 million, which was at the higher end of the range (Euro 150-200 million) we announced on March 19, 2008. This represented a decrease of 47% compared with a year ago, due to higher R&D investments as a percentage of sales, and reflecting that Q1 2007 was a particularly strong first quarter for the company. Net income for the quarter was 48% lower, at Euro 133 million.

“Sony Ericsson continues to invest in expanding its product portfolio to appeal to a wider variety of consumers in both new and existing markets,” said Dick Komiyama, President, Sony Ericsson. “Our product announcements during the first quarter have been well received by the industry, and we expect to see a positive effect from these announcements during the second half of 2008.”

During the quarter, Sony Ericsson added a new sub-brand to its product portfolio with the announcement of the XPERIA™ X1, a high-end multi-media convergence phone based on Windows Mobile®, which will launch in the second half of the year. In addition, the company announced a number of new phones during the quarter to increase the appeal of its brand to a broader audience. These included new high-end Walkman® and HSDPA web phones, such as the W980, W760, Z770 models and also added to its cutting-edge Cyber-shot™ range with models such as the C702 and C902.
Average selling price (ASP) decreased both sequentially and year-on-year due to the impact of softer sales of high-to-mid end models in key markets. Market share for the quarter is estimated to be around 8%, down one percentage point sequentially.
Sony Ericsson made a dividend payment of Euro 470 million during the quarter to the parent companies. A second dividend payment will be made this year.

Sony Ericsson forecasts that the global handset market for 2008 will grow at a rate of around 10% from more than 1.1 billion units in 2007. The majority of this growth is expected to be in emerging markets.


http://www.sonyericsson.com/c[....]semcfinancialsrelease-20080423

[ This Message was edited by: whizkidd on 2008-04-23 09:17 ]
--
Posted: 2008-04-23 10:11:46
Edit : Quote


Tisk tisk tisk SE.
--
Posted: 2008-04-23 10:21:41
Edit : Quote


Its not such a bad result.
SE predicts 10% growth this year mainly from emerging markets which means that average selling price will drop as more low priced phones are sold. SE's ASP is still 50% higher than Nokia's so SE retains it's premium image. Lets hope SE's massive investment in R&D pays off with some phones with WOW! factor to bring the high end market back from Nokia's S60 range.
--
Posted: 2008-04-23 10:33:12
Edit : Quote




what does that suppose to mean?
--
Posted: 2008-04-23 10:33:52
Edit : Quote


Quote:
On 2008-04-23 10:11:46, whizkidd wrote:


During the quarter, Sony Ericsson added a new sub-brand to its product portfolio with the announcement of the XPERIA™


I think strategy is to make Xperia a multimedia - all rounder phone like nokia N series

--
Posted: 2008-04-23 10:38:00
Edit : Quote


Only 22m handsets sold against LG 24m. What does that mean?
--
Posted: 2008-04-23 13:31:46
Edit : Quote


LG sold more phones
--
Posted: 2008-04-23 13:34:09
Edit : Quote



--
Posted: 2008-04-23 13:36:29
Edit : Quote


the gap between SE and LG shrinked this quarter but it happen before in 2005 since Korean maker tense to get very strong in Q1 when all others europe/ US have finish their holiday season....if not mistaken...most major asia holiday like Chinese Lunar New Year or maybe Korean/ Japan new year all fall in Q1. Tht could be why.

BUT if SE still lag behind LG in Q2....then it will mean SE is suffering in market share but no matter how....it need to make sure it get enough profit to get us innovative product. Tht is the key and things we really hope for.
--
Posted: 2008-04-23 13:49:45
Edit : Quote




You are forgetting that SE had mentioned weaker sales would result in their higher spending of Research & Development in order to expand their portfolio for future growth. this was mentioned by SE in a press announcement 2Qtrs previously.
--
Posted: 2008-04-23 14:37:04
Edit : Quote

---

New Topic   Reply

Forum Index