Sony Ericsson reported a net loss of €Euro 25 million (US$33.8 million) for the quarter, down from a profit of €267 million in the same period a year ago, while sales dropped 9.7 percent to €2.81 billion. However, the results were not as bad as many analysts had feared as analysts had predicted a loss of €141 million on sales of €2.74 billion.
The vendor is currently in the process of implementing a cost cutting programme that will see it eliminate 2,000 jobs globally, and is targeting savings of €300 million a year by the second half of next year.
Sony Ericsson's unit sales fell to 25.7 million from 25.9 million a year earlier, beating the analyst estimate of 24.3 million units. The average selling price for its phones in the quarter was €109, down from €116 in the previous quarter and from €120 a year ago.
With more depressing times ahead, the future for Sony Ericsson isnt going to be easy one. Unless with better range of products, Sony Ericsson isnt expected to challenge or eat into the market share of its leading competitors.