The Sony Ericsson company has published the first quarter sales results for 2008. The forth world phone manufacturer has prevented its investors about the profit fall in advance, that’s why the news that the company’s profit fell from 254 mln. EUR in the first quarter 2007, to 133 mln. EUR, was not surprising. The company’s indicators had even surpassed analysts' expectations, resulting in a modest growth rate of shares on the Stock Exchange in Stockholm.
The company’s revenue also fell with 7.6% till 2.7 mlrd. EUR in the first quarter. The drop rate was caused by the forecasted low demand for middle and high class phones. However, the average sales rose based on the low end phones, the company sold 22.3 mln. of such phones, which means a 2% growth compared with the last year. All together, compared with the fourth quarter 2007, the sales dropped with 26%.
The average cost of the company’s mobile phones fall to 121 EUR from 123 EUR in the IV quarter 2007. One year ago, the average phone cost was 134 EUR.
In this way, the Sony Ericsson market share also dropped to 8% (it was 9.7% in the IV quarter 2007).
