Feeds

Sony Ericsson sees profits tumble, turns on workers

A new low for high-end handsets

Eight steps to building an HP BladeSystem

There'll be long faces at Sony Ericsson this evening, with the gloomy news that the mobemeisters is cutting 2,000 jobs after pulling in just €6m in profits in the last three months.

This is a massive slide on the €220m the company made during the same period in 2007, despite shipping almost as many phones.

In their second quarter results, the company reports that last year it managed to ship 24.9 million handsets during the period, bringing in a total of $3.1bn. This year that figure is 24.4 million, bringing in €2.8bn, but the margins are a lot lower as the economy weighs against the mid-and-high tier handsets that form the core SE proposition.

The company has tried to sweeten the pill - for investors anyway - by announcing cost cutting to tune of €300m. Put another way, the firm is axing 2,000 staff according to reports.

The average selling price of a Sony Ericsson handset is now €116, compared to €125 this time last year, reflecting the tighter margins rather than any redirection of company priorities.

Expansion into the lower end of the market isn't on the agenda for next year either. Instead, the company plans to cut operating expenses, by €300m annually, over the next year or two. That should restore the profits, assuming the cuts can be achieved with no loss of quality or quantity.®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.