Delays in competing in the smartphone market hit third-quarter results at mobile phone maker Sony Ericsson, which yesterday reported a sharply wider net loss and a 42 percent sales plunge.
The joint Japanese-Swedish enterprise formed in 2001 said net earnings came to 164 million euros (US$244 million) in the July-September period after a shortfall of 25 million euros in the third quarter of last year.
Third quarter sales fell 42 percent to 1.62 billion euros from 2.8 billion a year earlier. Compared with the second quarter, sales were down 4 percent.
From July to last month the company sold 14.1 million mobile phone units, a 45 percent fall from the 25.7 million sold in the year-earlier period.
However, the company pointed to a 2 percent gain in sales from the second quarter. The average third quarter sales price was 114 euros against 122 euros in the second quarter.
Sony Ericsson estimated its third-quarter market share at 5 percent, unchanged from the second, and forecast a 10 percent contraction in the global mobile phone market this year.
Outgoing Sony Ericsson president Hideki “Dick” Komiyama said: “Having refreshed our brand we are now better positioned to support the launch of new products ... in fourth-quarter 2009.”
Komiyama was replaced on Thursday by Bert Nordberg.
The company has suffered from delays in its operations on the smartphone market, currently dominated by Apple’s iPhone and the Blackberry by Research in Motion.
Separately, Nokia, the world’s biggest mobile phone maker, said yesterday it had appointed a new financial officer a day after reporting its first loss in a decade.
The company said Timo Ihamuotila would replace Rick Simonson, taking up his post on Nov. 1. Simonson will become head of Nokia’s Mobile Phones division and both men will continue as members of the group executive board.
The Finnish company shocked markets on Thursday with its reported loss, which came in the face of rising competition in the smartphone market and problems with its Nokia Siemens Networks joint venture.
Nokia’s July-September net loss was 559 million euros.
Nokia said Ihamuotila joined the company in 1993 and has worked as corporate treasurer and at many senior posts, including portfolio manger of global sales of devices and services.
“In addition to his background in finance, Timo Ihamuotila’s expertise from leading a diverse range of business areas will be a tremendous asset in his position as chief financial officer,” Nokia chief executive Olli-Pekka Kallasvuo said in a statement.
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