Sony is in financial trouble - which is no surprise as general world-wide phone sales are down and all the major manufacturers, such as Nokia, have posted poor results. However, talking to Nikkei News, Sony's Chief Financial Officer has revealed that Sony Ericsson resides in rather more dire straits as it requires €100 million to stay in business. The reason is hardly surprising with demand falling and, more particular to Sony Ericsson itself, a gap in its product portfolio. This point surely reflects on the absence on an Android mobile phone but it also reflects on the relative lack of success of the Xperia 1.
Of course, this news follows on from earlier revelations that the company's sales dropped by 50% with a loss of between €340 and €390 million, said the Engadget website.
Sony Ericsson is considering various financing options for that, including loans or equity injection from parent companies, or the issue of new shares.
Click to read the Engadget story