Thursday, January 15, 2009

Sony Ericsson Predicts 5% Decline in Mobile Shipments in 09

The Global economic slowdown led to contracting consumer demand for new mobiles in Q4 2008. Sony Ericsson's sales for the quarter were EUR 2.914 billion, an increase of 4% sequentially due to a positive impact of currency fluctuations, and a decrease of 23% compared to Q4 2007. Units shipped in the quarter were 24.2 million, a sequential decrease of 6% and a year-on-year decrease of 21%. The decline in sales year-on-year was driven by lower volumes, due to the global economic slowdown that resulted in contracting consumer demand and decreased availability of credit. Gross margin became 15% due to negative impact from exchange rate fluctuations, restructuring charges and material write-offs.

The average selling price (ASP) for Sony Ericsson in Q4 2008 was EUR 121, an increase sequentially but a decrease year-on-year. The sequential increase of ASP was due to a positive impact of foreign exchange rate fluctuations and to the sale of a higher proportion of high-end models. Estimated market share for Q4 2008 is maintained at around 8%.

"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. Our business alignment is progressing as planned, with the full effect of annual savings of around Euro 300 million expected by the second half of 2009. We foresee a continued deterioration in the market place in 2009, particularly in the first half," said Dick Komiyama, President, Sony Ericsson.

The additional cost saving measures initiated by Sony Ericsson are aimed at reducing operating expenses by a further Euro 180 million annually, with the full effect expected at the end of 2009.

Sony Ericsson estimates the 2008 global handset market as being around 1,190 million units or around 6% growth from 2007, compared to the company's previous forecast of around 10%. Sony Ericsson forecasts that the global handset market will contract in 2009 by 5% and that the industry ASP will continue to decline.

Alcatel-Lucent's Taiwan WiMAX Center Cites Momentum

Alcatel-Lucent highlighted key milestones in 2008 by its Taiwan WiMAX Center, which was established in cooperation with Taiwan's Ministry of Economic Affairs (MoEA). Some of the center's achievements include:

  • Interoperability testing: Collaborated with 8 Taiwan technology giants, including Asus, AWB/Accton, D-Link, Gemtek, MediaTek, QMI/Quanta, USI and Zyxel in interoperability testing of WiMAX terminal devices on 24 models, including indoor and outdoor CPE, PCMCIA/Express cards, USB dongles and WiMAX-enabled laptops.

  • Device certification: Enabled the ramp-up of Alcatel-Lucent's WiMAX Seal of Interoperability Acceptance for Commercial Services (SIACS), giving Alcatel-Lucent's operator customers the highest possible assurance of interoperability and quality. Award of SIACS to products provides WiMAX service operators with performance metrics for enhanced predictability. So far, devices from Zyxel, Quanta, Accton, and D-Link have been the Alcatel-Lucent SIACS.

  • Strengthening of cooperation between local manufacturers and global WiMAX service operators: In line with the Alcatel-Lucent Open Customer Premises Equipment (CPE) program, the center has actively facilitated contacts and cooperation between local CPE suppliers and WiMAX service providers worldwide, permitting the latter to offer their customers the widest variety and highest quality of devices. In the past year, the center has received WiMAX service operators, from Hong Kong, Cambodia, Malaysia, the Netherlands, Europe, and Australia to Taiwan and facilitated meetings with local CPE suppliers.

Under its new WiMAX strategy, Alcatel-Lucent said it is committed to continuing development of its WiMAX 802.16e (Rev-e) product line.