Sony Ericsson Cuts 2,000 Jobs

Mobile phone maker Sony Ericsson announced today that it would cut 2000 jobs, as the company reports a second quarter operating loss of $3.17 million. The company has been pinched by plummeting demand for its high-end smart phones and inflation eating away at margins for inexpensive cell phones, and things don't seem to be looking up: "Challenging market conditions are expected to prevail this quarter," the company said in a statement. Net income for the company fell from $347.6 million a year ago to $9.48 million while sales slumped 9.4 percent to $4.4 billion. Unit sales in the quarter reached 24.4 million, down from 24.9 million units a year ago. The closely watched average selling price per unit was $183, whereas a year ago, it was $197.50.

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The reason their devices weren't as popular as others, at least from ppl I heard from, is the fact that SAR or radiation emanated from SE devices, is found to be amongst the highest in the market. Probably most want to play safe since there are no certain claims on the SAR effect on health.

It's probably the fact that the phones aren't reliable... I loved my SE's... when they worked.

I had one with the earpiece dying on me, another with back light going out, and another one wouldn't charge anymore.... it was like clock work... every 6 months... i'd have to get another one.

I don't consider myself harsh on on phones either... never drop them, get cases and screen protectors... and having 3 phones die on me in 18 months is never good... Three strikes and there out.

I feel somewhat bad for SE, i suppose you could say i'm a fan of their phones most of the ones i have had have been either ericsson or sony ericsson. I do however think they've been missing a trick or two lately and they definately dropped the ball with the K850i good phone but rubbish camera for a phone that has cybershot branding? Shocking simply shocking. Well hopefully this week make them think a little harder about the next high-end phone they release.

I glad that sony is in trouble. I bought a K850i and the phone is crappy crap.. Takes horrible pictures compared to my friends N95 even though its supposed to have better flash. and the phone is slow.. Sometimes freezes when I type numbers too fast.

**** a brick, that fall in income is INSANE!!

SE have a facility in my town so it might have a fair bit of impact locally