Sony Ericsson warns investors of low profits

In a preemptive strike intended to avoid a shock during their upcoming mid-July earnings report, Sony Ericsson warned investors that their results for this quarter might be less than stellar. The company is expecting to break-even, which is a far cry from a highly profitable 2007. SE expects to report that it has shipped fewer than the 24 million handsets they moved during the same time last year. Additionally, they expect to report an average selling price of $181/handset, down from the $192 they were pulling in at the beginning of the year. So sad. While it might be easy to blame the general state of the economy, we’re more inclined to target the success of SE’s competitors with responsibility for its current woes. Handset delays, coupled with misplaced attention to mid-range phones and questionable designs are all contributing factors. That said, if they can actually get their act together and release the Xperia on time, the next earnings report might look a little different.


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