Sony Ericsson Announces 97 Percent Slip In Profits. Plans Job Cuts

Sony Ericsson didn't have a good quarter, in fact it outright stunk. The cell phone manufacturer announced a loss of profits that totalled 97% today. The company had reported impressive gains in the first quarter of 2008. The loss of profits comes at a time when the number of handsets sold by the company has actually increased.

According to a Sony Ericsson earnings report the OEM actually sold 24.4 Million handsets in Q2 2008 a number up from the 22.3 Million units in the prior 1st Quarter 2008.

The reason for the profits according to Sony Ericsson comes from the fact that most of their currently available devices are in the entry-mid level range, meaning less profits being derived from each device sold. Couple those losses with the long awaited and oft delay release of the Sony Ericsson Xperia Pocket PC and the whole picture begings to become clear.

Even with the dramatic loss of second quarter profits the company still expects 2008 sales to increase by 10% overall compared to sales in 2007.

In the meantime Sony Ericsson has announced their intention to cut at least several thousand jobs worldwide.

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