Sony Ericsson has reported a massive $379 loss for the second quarter after sales of their phones fell 43%. The Company who has attempted to leverage Sony brand names, such as Walkman and Cybershot, has struggled to compete against arch rival Apple and their iPhone and lifestyle offerings from both LG and Samsung.
The company shipped 13.8 million units in the seconds quarter period, which was down 43% from the same quarter last year.
Their losses are set to contribute to bigger losses for Sony, who are tipped to announce another bad quarter as consumers walk away from buying their phones, Bravia LCD TV’s and Playstation gaming consoles.
Earlier this year Sony Erisson revealed a high resolution display phone with a 12.1 Megapixel camera, running the Symbian OS. Sony Ericsson said that sees the mobile market declining by about 10% in 2009 due to the global economic recession.
“As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson,” said the company’s president Dick Komiyama in a statement. “Our focus remains on bringing the company back to profitability and growth as quickly as possible, and our performance is starting to improve due to our cost reduction activities.”
The Company admitted that they need a capital injection in the second half of the year however they said that financing should not be an issue, and this could come from its parent companies Sony and Ericsson, or from outside sources.