Feeds

Sony Ericsson slips on stockpiled handsets

Quarterly sales, profits slump

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Sony Ericsson saw its income halve during its most recently completed quarter, the first of fiscal 2005, on the back of falling sales and falling handset prices.

SE shipped 9.4 million phones during the three months to 31 March 2005, down 25.4 per cent on the previous quarter, but up 6.8 per cent on the year-ago quarter's total.

Despite that increase, sales were down 3.7 per cent between the two quarters from €1.34bn ($1.72bn) to €1.29bn ($1.65). Q1 FY2005's revenues were down 35.7 per cent on the previous quarter's €2.01bn ($2.58bn).

Income before tax fell 50 per cent sequentially, from €140m ($179.5) to €70m ($89.7m), and down 27.8 per cent year on year. The quarter's net income comes to €32m ($41m), down 41.8 per cent on the previous quarter's €55m ($70.5m) and down 61 per cent on Q1 FY2004's €82m ($105.1m).

Of course, the quarter following the Christmas sales season was going to be down on its predecessor, made worse, SE noted, by a shift in the Western European market toward lower-end handsets on pre-pay tariffs and by Q4 FY2004 inventories being carried over into Q1 FY2005, reducing demand further. SE also admitted it had launched few new products during the quarter and so failed to counterbalance the falling average selling prices of older models.

The products that it did launch in Q1 - most notably, perhaps, its Walkman-branded handset - will stand it in good stead during the coming year, the company forecast. It sees "good growth potential" with new subscribers coming into the market and existing customers looking to upgrade. ®

Related stories

Sony Ericsson preps Walkman phone
Sony Ericsson adopts PowerVR MBX for smart phones
Mobile phones shipments up 38% in Q4
Mobile open-standards group recruits key players
Sony Ericsson profits leap 28%
Nokia cuts hit smart phone, multimedia R&D

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.