Mobile phone giant Sony Ericsson today reported tumbling profits for the first quarter, blaming a seasonally weak market and admitting that its outdated product range had failed to excite consumers.
First-quarter net profit fell to €32m from €82m a year ago, and from €55m in the last quarter of 2004. The number of units shipped increased to 9.4 million from 8.8 but a falling average selling price meant that sales declined to €1.289 billion from €1.338 billion in the first quarter of 2004.
Sony Ericsson said that the entire mobile phone market had weakened in the quarter, partly because overhanging inventories made for a more competitive environment.
But the company also admitted to its own shortcomings, notably a lack of new mobile phone models to stir buyers' interest.
'The product line-up was mature and few new products were launched during the period,' Sony Ericsson said.
But this had since been fixed, the company said, and new third-generation (UMTS) phones, high-resolution camera phones and a music phone were to roll out during the second and third quarters of the year.