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 WindowsMobileToday > News > Sony Ericsson Cuts Jobs, Delays Android Plans

Sony Ericsson Cuts Jobs, Delays Android Plans

By Michelle Megna
April 21, 2009

Sony Ericsson is putting plans for any Android-based smartphones on the low-priority list after announcing layoffs, a $382 million loss for the first quarter and a 35 percent drop in shipments year-over-year.

The company announced in its earnings report that it will cut 2,000 jobs, after trimming 2,000 last year, and that phone shipments fell 35 percent, to 14.5 million between January and March.

"As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible," Dick Komiyama, president, Sony Ericsson, said in a statement. "The management intends to pursue an additional cost saving program targeting a further annual operating expense reduction of Euro 400 million, to be completed by mid-2010."

Sony Ericsson's (NASDAQ: ERIC) grim financial news comes at a time when handset makers gun for position in the smartphone market, with signature releases slated for this summer. They include the do-or-die Pre from Palm, the rumored new iPhones from Apple (NASDAQ: AAPL) and BlackBerry models from RIM, plus Android devices from Samsung, HTC and Acer.

Though Sony Ericsson is touting its newest model, the Idou, based on Symbian's upcoming operating system, it's not poised to gain back any of the marketshare it is losing in the high-end mobile phone category, mobile analyst Avi Greengart of Current Analysis told InternetNews.com.

"Sony Ericsson was once a focused company: it built high-end featurephones and a handful of Symbian UIQ smartphones. The high-end featurephones were overtaken by Nokia's Nseries - and the European economy - and its Symbian smartphones never had a chance to penetrate the U.S. market at all," said Greengart.

"Right now, Sony Ericsson appears lost, and there is simply no way it can build featurephones, Android phones, Windows Mobile phones and Symbian Foundation phones and end up with differentiated offerings in each category," Greengart added.

Holding off on Android
Meanwhile, the company plans to put any Android releases on hold, according to Reuters reports, as industry watchers eagerly anticipate new handhelds on Google's open-source mobile platform to see how they'll fare in the competitive smartphone market.

Get the full story here at InternetNews.com.

 
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