Friday, March 20, 2009

Sony Ericsson braced for losses


Sony Ericsson has said that it expects to make a loss in the first three months of this year as sales continue to suffer in the economic downturn.

The company predicts a net loss before tax of between 340m euros (£320m; $466m) and 390m euros for the quarter.

Both retailers and distributors are cutting their stock, said the firm.

Other mobile phone firms have also seen sales fall as demand slows. Earlier this week, Nokia said that it would shed 1,700 jobs due to poor sales.

And previously mobile phone giant Motorola said it would cut 4,000 jobs, roughly 6% of its workforce, to reduce costs.

Sony Ericsson said it was likely to ship around 14 million phones during the first quarter.

It is due to announce its full quarterly results on 17 April.

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