Sony Ericsson has reported significant global losses for 2008 and predicted continued deterioration in the marketplace.
The handset manufacturer said sales last year totalled €11.244 million, a decrease of €1.72 million (£10 million) compared to 2007. It said this was driven by lower volumes due to the global economic slowdown that resulted in contracting consumer demand and decreased availability of credit.
Gross margin decreased nine per cent to 22 per cent for the year, with Sony Ericsson pointing the finger at the negative impact from exchange rate fluctuations, restructuring charges and material write-offs.
Operating margin dropped to minus one per cent compared to 12 per cent the year before. The company did however state that the previously announced annual €300 million cost savings are on track
Sony Ericsson president Dick Komiyama (pictured) said: “In economic terms, 2008 has been a tumultuous year with world markets experiencing a serious downturn. The mobile phone market has been greatly affected by this as expected, the fourth quarter continued to be very challenging for Sony Ericsson.
“Our business alignment is progressing as planned, with the full effect of annual savings of around €300 expected by the second half of 2009. We foresee a continued deterioration in the market place in 2009, particularly in the first half.”