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Sony Ericsson Parts Shortage Blamed for Grim Q3 Figures

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Sony Ericsson Xperia X10 Mini ProSTOCKHOLM, Sweden – Sony Ericsson has blamed the shortage of parts for the delay in shipments of handsets, which in turn resulted in drop of sales figure in the third quarter.

At this point of time, the manufacturer is the world’s fifth-largest phone maker in the world, and has suffered seven straight quarter losses in a row, and now to jump back into the game, it has started to follow the cost-cutting policy and revamping its existing portfolios.

Sony Ericsson has now put its trust in smartphones such as the Xperia X10, Vivaz, X10 mini and X10 mini pro, which are quite advanced and bring instant social network connectivity. Sales in the third quarter were down at 1.6 billion euros, which correlates with the estimated at 1.8 billion euros in a poll conducted by Reuters.

The main fallback for the failure of handsets being shipped by the handset giant was the non-availability of LCD screens and printed circuit boards (PCB) for the handsets, this in-spite of Sony Ericsson handsets doing well in the market, said the chief executive of the company, which sighted reason of demand exceeding supply.

In this period, Sony Ericsson shipped 10.4 million handsets, failing to meet the predictions of 27 analysts which estimated a volume of 10.5 million to 13.9 million.

Per Lindtorp, an analyst at Eric Penser said that “it was clearly weaker than expected, 8% below my expectations on EBIT (earnings before interests and taxes)- and it’s mainly lower volumes that explain it”. The CEO of  Sony Ericsson said that the company’s market position is “stabilizing”.

With the holiday season around the corner, and with the high demand and user friendliness of the Android operating system, Sony Ericsson could back in the game.

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By , on Oct 19th, 2010 GMT +2


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