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Earnings

Sony Ericsson Warns First Quarter Profits May Fall; Blames Slowing Sales Of High End Handsets

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Not a good sign for mobile content, obviously. Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) said today that the market for mid-to high end phones—the ones with all the additional features and applications—was slowing, and would hurt its first quarter sales and net income before tax, according to Dow Jones. Sony Ericsson’s president Dick Komiyama said the problem was especially “pronounced in the mid- to high end replacement sector of the market in Europe,” where the handset maker has a stronger than average market share. Komiyama vowed to wean Sony Ericsson off its dependence on Europe’s high end handset market, and to extend into new markets, with the aim of becoming a top three handset maker by 2011. The bad news comes just a week after chip maker Texas Instruments cut its financial forecasts, citing a slackening demand for the 3G handsets that its chips end up in.

Mar 19, 2008 9:29 AM ET

Posted In: Gadgets, Money, Earnings, Companies, Sony, Sony Ericsson, Countries, Europe

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