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Sony Ericsson posts Q1 2009 loss of €358 million

Updated 4 years ago
Published Apr 17th, 2009 2:09PM EDT

Sony Ericsson announced its third straight quarterly loss this morning, shocking absolutely no one. The company posted a pre-tax loss of 358 million with handset sales plummeting 36 percent from the same quarter last year. Sony Ericsson’s gross margin also fell, shrinking to a mere 8 percent in Q1 2009; down from 29 percent in Q1 2008. Though abysmal, the results lined up with analysts projections and Sony Ericsson remained optimistic that it can ride out this rough economic climate. The joint company announced another cost saving program that will trim an additional 400 million from expenses but will result in the loss of 2,000 jobs. All is not doom and gloom however, as Sony Ericsson remains committed to the launch of its “Entertainment Unlimited” lineup of high end handsets which feature music, imaging, gaming, content services and applications. This lineup will include the hotly rumored Idou unveiled at MWC 2009 and another not-yet-announced handset expected to be unveiled on May 28th, 2009.