Sony Ericsson today announced its quarter results with a 358 million Euro loss and 2000 job reduction. Here is some highlights for the first quarter ended March 31, 2009:
Units shipped in the quarter were 14.5 million, a decrease of 35% compared to the same period of last year and in line with our March 20, 2009 interim announcement of approximately 14 million units. Sales for the quarter were Euro 1,736 million, a decrease of 36% from a year ago. Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels.
The additional cost saving program announced today will include a further reduction in the global workforce of approximately 2,000 people. It is estimated that new restructuring charges of Euro 200 million will be needed to complete this program.
As of March 31, 2009, Sony Ericsson retained a strong net cash position of Euro 1.1 billion.
Market share in the first quarter decreased and is now estimated to be around 6%, down two percentage points sequentially.
Sony Ericsson forecasts that the global handset market for 2009 will contract at least 10% from around 1,190 million units in 2008.
At Mobile World Congress in February 2009, Sony Ericsson announced a new consumer proposition, called ?Entertainment Unlimited? (EU), to build on Sony Ericsson?s leadership in music, imaging, gaming, content services, and applications to deliver unlimited opportunities for consumers. The company also announced the first Entertainment Unlimited phone with the concept name ?Idou? to be launched in the second half of 2009. The next EU announcement will take place on 28 May.