Sony Ericsson lost nearly $248 million in the fourth quarter and $96.8 million for 2008, the company announced today.
The quarter’s loss was drastically worse than in the third quarter, which saw a loss of only $33.15 million. A year ago, the company was $494.6 million in the black. For 2007, the company was $1.48 billion on the plus side.
Revenue was $3.86 billion for the quarter and $14.9 billion for the year.
Sony Ericsson shipped 24.2 million phones in the quarter, compared with 25.7 million in the third quarter and 30.8 million a year ago. For the year, the company shipped 96.6 million phones, versus 103.4 million in 2007.
Company President Hideki “Dick” Komiyama cited the tough economy as a continuing factor into the first half of 2009 but said Sony Ericsson’s recent layoffs helped. “In economic terms, 2008 has been a tumultuous year with world markets experiencing a serious downturn. The mobile phone market has been greatly affected by this and as expected, the fourth quarter continued to be very challenging for Sony Ericsson,” he stated.
News highlights in the quarter include Sony Ericsson’s membership in the Google-led Open Handset Alliance (OHA), with plans to develop an Android phone, and the rollouts of the Xperia X1 and Cyber-shot C905 phones.
Peter Boyland, telecom analyst at HIS Global Insight, said in a report today that Sony Ericsson’s troubles are caused by low-cost rivals. In addition, “the company has announced a further savings drive, involving restructuring and consolidation — meaning job losses could very well be on the cards,” he said. “As its key markets stagnate, Sony Ericsson may need to consider serious reinvention if it hopes to expand its business elsewhere into growth markets in emerging regions.”