Sony Ericsson anticipates fourth consecutive loss


March 23, 2009

Handset maker Sony Ericsson expects to report a loss of between €340 million and €390 million (£297m and £341m) for the first quarter of 2009.

Shipments are expected to drop by 8 million units (36%) on year.

This is compounded by the average selling price of handsets falling despite increases in production costs.

It will be the fourth consecutive quarterly loss for the company, which has already announced plans to axe 2,000 jobs.

One thousand employees have already left the company, with 1,000 more to follow in the near future.

The company refused to rule out further job cuts.

Rumours in the German press suggest that Sony is considering ending its 50-50 partnership with Ericsson by buying out Ericsson’s stake.

If this route is taken, then Sony is expected to change its focus to high-end handsets.

Nokia recently announced plans to axe 1,700 jobs, whilst Motorola is believed to be on the verge of bankruptcy.

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