“Mobile phone maker Sony Ericsson has said it will shed 2,000 jobs worldwide over the coming year to cut costs,” BBC News reports.
“The news came as Sony Ericsson reported an operating loss of 2m euros ($3.1m; £1.59m) for the second quarter, against a profit of 315m euros a year ago,” The Beeb reports. “Sony Ericsson said it was aiming to cut operating costs by £300m a year.”
The Beeb reports, “In June, the company had warned its profits would be less than previously forecast as demand for expensive handsets waned.”
MacDailyNews Take: Gee, quite the headscratcher; wonder where that demand went?
Full article here.
..Yes… really wonder what sort of phones people lined for???
Can we say iPhone!
To answer the MDN take, iPhones. (And under my breath, Blackberrys)
It’s not the iPhone that hurts their smartphone and Walkman sales one vice president told a swedish newspaper..
Duh!
You are pathetic..there are only a few million sold iPhones overall thusfar (to the end of (Q2/2008), in contrast the market will grow with about 100-120 million phones this year.
Motorolas and SE’s problems have nothing, absolutely nothing to do with any few-mills sold iPhones – get a life.
@MDN
How about you pay a bit more attention to the KEY sentence in the article quoted and then comment accordingly. The reference was made to top end phones, not your everyday, give away types.
“In June, the company had warned its profits would be less than previously forecast as demand for expensive handsets waned.”
Oh, and while you’re at it, wipe that brown ring from around your neck, it isn’t very becoming!
@ @MDN
Yes, assaulting a message board on a Friday afternoon. There’s fun some fun ALL your friends.
See you on World of Warcraft tonight?
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OK people (and MDN), you have been set straight by ‘@MDN’. That’s the end of this discussion.
Oh yeah?
Wait and see. One doesn’t have to measure the effect of a competitor’s product based on sales alone. When buyers hold back purchases for something else, something is in the wind…..and it’s probably not flatulence.
The flatulence is coming out of @MDN’s mouth. Sure, Apple is but a bit player in the mobile phone market at the moment, but the iPhone is a worldwide phenomenon and it’s cachet will only grow. Sony Ericsson is merely doing the early bloodletting now, to ease the future job layoffs that will surely mount as Apple continues to refine the future of mobile computing.
Must be the bad business environment caused by bushism… I sure the iPhone had nothing to do with it! <GRIN>
Ohhh – now I feel really bad – the old phone I put away in place of my new shiny beautiful slick smooth iPhone 3G was a Sony Ericsson… not really. My bro gave me that phone after he got the 1st gen iPhone. I would’ve never bought a Sony Ericsson in the first place.
I think MDN had the right take and all you nay sayers are off base. I think that the iPhone is affecting the cell phone industry beyond its sales figures.
When you only make a few cents profit and are racing others in a race to the bottom of the barrow, Is it really a place you want to race to???? LOL
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Why do people keep putting Apple on such a high pedestal.???
Juat a thought.
en
Can you say bleag belegrd belugared… In trouble? (darn touch keypad)
John
be·lu·gar : (transitive verb) • to cover in whale shit or expensive fish eggs depending on geography and local culture
Inflected Form(s): be·lu·gared, be·lu·garing
Is that girl wearing the red ‘Jesus Saves!’ t-shirt in the Noise Bot ad pregnant, or did she eat a boatload of beans?
@Ampar–
So, is “belugar” what happened to Steve Ballmer?
@MDN “Motorolas and SE’s problems have nothing, absolutely nothing to do with any few-mills sold iPhones – get a life.”
Clearly you don’t understand where the money comes from. As is the case is with PC makers, the race to the bottom for sub $500 computers leaves very little profit, despite large volumes. It’s the big ticket items like computers over $1000, or smart-phones in this case, that brings in the fat profit margins.
Apple is taking the most profitable portion of the market and that is hurt Motorola’s and SE’s bottom line. How many millions of throw-a-way phones sold in the third world, at near cost, does it take to match what Apple made selling one million iPhones last weekend at a 35% profit margin?
Wake up!
“So, is “belugar” what happened to Steve Ballmer?”
It would explain a few things.
it’s obvious that everyone is keeping their old handset until their plan fully expires then buying an iPhone or an android phone.
Hence the iPhone does have major influence in that decline… As well as the fact that I flation is rising to combat overspending …