Sony Ericsson Mobile Communications saw sales drop more than a quarter year-on-year in the first three months of this year, while profits sank into the red, according to figures released by Sony.
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The company, which is owned jointly by Sony and Ericsson, saw net sales fall 28% year-on-year to £551m, Sony said as it announced its full-year financial results.
Net losses at the handset maker in the quarter were £72m with a profit of around £2.1m a year ago and unit shipments in the quarter were 5.4 million units, which is down 400,000 units on the year.
Sony listed several reasons for the drops including increased pressure on pricing, expenses due to the launch of new GSM and Japanese mobile handsets. The results also looked worse when compared to healthy results recorded a year earlier as the result of successful products in the Japanese and European markets.
The poor performance at Sony Ericsson resulted in a net loss to Sony of ¥6.5bn (£34m), said the company.
The latest mobile market figures from Dataquest estimated that Sony Ericsson saw shipments drop around 15% in 2002 making it the only one of the top five mobile handset makers to lose market share during the year. The company had a 5.5% market share during the year. Market leader Nokia had a 35.8% share, according to the figures.