Sony Ericsson announce a crash in profits

Sony Ericsson has received a series of very disappointing financial figures resulting in an announcement that 2,000 of its workers will be released. The company is still making a profit. However, it's the amount of profit that is causing concern. During the past three months, Sony Ericsson only made 6m Euros which is small fry for such a large company. Especially when you compare the like for like sales in 2007 which topped 220m Euros. This lower figure is even more interesting when you consider that the company actually sold a similar amount of handsets.


To elaborate, last year Sony Ericsson sold 24.9 million handsets over those 3 months during 2007. Income from these sales fetched a healthy $3.1bn. This year, however. despite the sales figure of 24.4 million, over the past three months of 2008, bringing in €2.8bn, the profits have crashed because those sales have been focused on the budget and mid-price models, instead of the higher specification designs of the previous year.


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