Feeds

Sony Ericsson sees profits tumble, turns on workers

A new low for high-end handsets

SANS - Survey on application security programs

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.®

3 Big data security analytics techniques

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.