Sony Ericsson, one of the world’s leading mobile phone manufacturers, has announced that the company expects a post first-quarter loss of 340 million Euros to 390 million Euros.
Perhaps lack of a marketing strategy in time of global financial crisis is the real reason for the loss and inevitable cut-backs in jobs. The company blames weak consumer demand for the loss. However, if the company would face the financial crisis with a competent business strategy, losses can be minimized.
The company announced that they will sell just about 14 million phones in Q1 2009 when in Q4 2008, Sony Ericsson shipped more than 30 million. In the same time, a German magazine said that Sony is interested in buying Ericsson’s share of the Sony Ericsson venture.
But Sony Ericsson is not the sole mobile phone maker with problems. Nokia said it will cut about 1,700 jobs in order to cut expenses that mobile phone sales could not cover. In the same time, US mobile phone bestseller Motorola said it will cut over 4,000 jobs.