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Sony Ericsson may ask for $136.5m bailout

updated 04:15 pm EDT, Tue May 19, 2009

Sony Ericsson Wants 136m

Sony today said that its cellphone joint-partnership Sony Ericsson is likely to ask for 100 million Euros ($136.5 million) before the end of its current fiscal year in March 2010. The injection, which could come from either Sony or Ericsson themselves, would be prompted both by Sony Ericsson's own struggling health as well as Sony's own dropping sales, which resulted in its first loss in 14 years and has reduced the Japanese firm's ability to support its phone offshoot. How Sony Ericsson will raise the funds will be decided by the two parent companies.

Such actions are regarded as emergency steps to save Sony Ericsson. Financial losses widened at the company in the first quarter of 2009 and were driven mostly by dramatically reduced phone market share as the handset maker has given up share at the low end, where Korean companies like LG and Samsung often thrive, as well as at the high end by smartphones like BlackBerries and the iPhone. Aside from the powerful but poor-selling XPERIA X1, the company has no modern smartphones and won't improve its share until the Symbian-based Idou and future Android phones ship from late 2009 onwards.



By Electronista Staff
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Comments

  1. greenG4

    Grizzled Veteran

    Joined: Aug 2002

    +3

    Bailout??

    That's not a bailout. When one company that owns a another company has to pay money into it, that's simply a price of doing business--not a bailout. The misleading title tries to indicate that they are asking for a government bailout, which they are NOT doing.

  1. jpellino

    Fresh-Faced Recruit

    Joined: Oct 1999

    +2

    This one is private money

    But it's funny how businesses are free market capitalists until their stock fades, then they all turn state sponsored socialists.

  1. byRyan

    Fresh-Faced Recruit

    Joined: Jun 2007

    -1

    been there

    I have owned a Sony Ericsson before. It was the slowest, worst phone I have ever used. Its menus were confusing and frustraiting, and were down right lethargic in responding to a button push. no dobt they are having difficulties.

    I say at this point, why bother... does the world really need more crappy phones? sony should forget about phones and focus on.... ummm... the million other things that sony does.

  1. Constable Odo

    Fresh-Faced Recruit

    Joined: Aug 2007

    -1

    Gosh! I'd heard so many

    people were going to buy the Xperia X1 just for that lovely keyboard which was supposed to be clearly superior to the iPhone virtual keyboard, and lo and behold it was a poor seller. Who woudda thunk it.
    It was a well designed handset and had nice features. It was one of the most anticipated handsets in 2008. But I always say, just because it's got lots of features, it doesn't mean it's gonna sell or be an iPhone killer.

    Tech-geeks take one look at a beautiful handset and say it's gonna beat the world. I'd heard the UI was baffling at best. I guess WinMo 6.1 can take credit for that shortfall. Whatever, it was a failure. Next.

  1. gikku

    Fresh-Faced Recruit

    Joined: Jul 2006

    0

    2006 models in 2009

    Just saying, to state the bleeding obvious, the Xperia X1 was two years late to market, it needed to have been a 2006/07 release not 2008/09.
    The 2007 iPhone trumped it, even before either of them came out.

    My K610i and M600i were, in many ways, very fine phones for 2006/07, but for 2008/09 they need that quantum leap.

  1. appleuzr

    Fresh-Faced Recruit

    Joined: Aug 2006

    0

    Sony C905

    I recently just ditched my iPhone (because it was getting just too expensive). I purchased a Sony Ericsson C905 and it's not too bad of a phone. Its got WiFi and an 8.1 megapixel camera (it's actually more like a cybershot camera with a phone built in). The OS response is fine and it hasn't glitched up on me yet.

    I do miss my iPhone, but you've got to do what you've got to do. Their design and for factor is alright. The "in" design currently is thinner and smaller. Their phones are thicker and not so small (which I think is great).

    When I got it I went to AT&T to switch from iPhone coverage to a lesser coverage and I whipped it out and the guy said I've never seen that phone before, that must be an older model we use to sell, I've only been working here for about 6 months. I just looked at him and said "are you done or do i need to stick around and watch".

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