The telephony sector is not pulling and Sony is suffering. Here, in summary, what we read in the financial statements of the Japanese company that presented today the results of the fiscal quarter, one of the heaviest at least from the point of view of the decline in profits in its recent history.
During the three months that ended at the end of June, the consumer electronics giant has totaled only 326.9 million dollars in profit, 47% less than last year with a turnover that has remained substantially identical (18.5 billions of dollars against 18.7 billion last year). The strongest Yen (appreciation of 16%) but also and above all the drop in sales of the telephony division impacted the results. Phone sales dropped 9%, with sales of $ 4.3 billion. In addition to the effects of a range that did not appear too spot on, Sony Ericsson was also affected by high research costs and strong pressure from competition on high-end products and in the smartphones sector which are the products with the greatest margin and those that determine an increase in turnover. On the other hand, the greatest growth, at least on large volumes, in the telephony markets occurs in countries where low-cost products are purchased, where Sony Ericsson does not have a strong hold.
According to some analysts, Sony's most dangerous competitor is Apple at the moment. The Japanese company universally recognized as an absolute protagonist in the consumer electronics sector and Apple is attacking this area with determination "producing products with great market appeal," said Sid Parakh, of McAdams Wright Ragen. One of these products own iPhone, a device that directly competes with the market niche where Sony Ericsson has always focused decisively, that of advanced and multifunction cellphones.
Sony, in any case, tries to console itself with good sales and a recovery in margins that derive from the sale of the PS3. By March 2009, the division that deals with video games, up to now oppressed by the choices (common to all console manufacturers when they launch a new product) that led her to sell the PlayStation 3 below cost, will begin to earn. Among the factors that are bringing PS3 to good results is the end of the war of high definition video formats which is pushing several customers to buy it to watch Blu-ray videos.