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Wednesday, 20 April 2011 - Sony Ericsson battles for parts after Japan quake |
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    Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Republicans attack Trump as he mulls 2012 run 2:21pm EDT Trump: My tax returns for Obama birth certificate 2:58pm EDT Governor vetoes birther, campus gun bills 10:37am EDT Republicans attack Donald Trump as he mulls 2012 run 3:18pm EDT RIM launches PlayBook, fans don't play along 2:42pm EDT Discussed 92 Palin returns with feisty, anti-establishment speech 83 Obama to lay out deficit plan with focus on tax, spending 74 UPDATE 1-Geithner says Congress will pass debt limit increase Watched VW unveils new sporty Beetle Mon, Apr 18 2011 Cupless bra combats cleavage crinkle Fri, Apr 15 2011 South Korean "super gun" packs hi-tech killing power Mon, Feb 14 2011 SMALL BUSINESS Patent battle hits Supreme Court A small Canadian firm's record $290-million patent victory over software giant Microsoft rests in the hands of the Supreme Court. Down to its final appeal, Microsoft argued a lower standard should be used, which could make some patents more vulnerable to legal challenge.  Full Article | Video  Microsoft-i4i fight has big patent implications A decade later i4i's battle with Microsoft nears finale Sony Ericsson battles for parts after Japan quake Tweet Share this By Simon Johnson and Tarmo Virki STOCKHOLM/HELSINKI (Reuters) - Cellphone maker Sony Ericsson is suffering component shortages following the Japanese earthquake and has roped in its bigger parents to give it more muscle in the fight for supplies... Email Print Related News Sony Ericsson: Phone components shortage due to Japan 9:08am EDT Analysis & Opinion Tech wrap: Apple sues Samsung over “slavish” copies China’s hot Facebook clone will cool down Related Topics Technology » Japan » A Sony-Ericsson Xperia Play is displayed at the GSMA Mobile World Congress in Barcelona, February 14, 2011. Credit: Reuters/Albert Gea By Simon Johnson and Tarmo Virki STOCKHOLM/HELSINKI | Tue Apr 19, 2011 10:46am EDT STOCKHOLM/HELSINKI (Reuters) - Cellphone maker Sony Ericsson is suffering component shortages following the Japanese earthquake and has roped in its bigger parents to give it more muscle in the fight for supplies with bigger rivals. Chief Executive Bert Nordberg said there were shortages of displays, batteries, camera modules and some printed circuit boards due to the March 11 quake, adding the problem was stabilizing but would definitely have a bigger impact in the second quarter. "We are now fighting for parts with bigger players," Nordberg told Reuters in an interview, adding the company was cooperating closely with its parent groups Sony Corp and Ericsson to garner more influence in talks with parts makers. First-quarter results from Sony Ericsson, which only returned to profit a year ago after seven straight quarters of losses, showed the company staying in the black on the back of booming smartphone demand and cost cuts. Yet Nordberg's comments add to signals from other global companies on the continuing impact of the earthquake. Earlier on Tuesday Toshiba Corp said its operating profit missed forecasts due to the disaster, while chip maker Texas Instruments Inc warned overnight of slower-than-usual quarterly sales growth as it scrambles to restart production. Japanese component factors will also be in focus in reports from Apple Inc on Wednesday and Nokia Oyj a day later. DELAYED ROLLOUT Sony Ericsson had said in early April the March 11 quake was limiting volumes in its new smartphone offerings and delayed the wider launch of its neo model to the third quarter. "The second quarter and possibly third will be difficult because of Japan," said Gartner analyst Carolina Milanesi. Sony Ericsson has slashed costs -- including cutting around 4,000 jobs -- and refocused on higher-margin smartphones that link to social networking sites like Facebook. The share of smartphones in its sales rose to 60 percent from 40 percent in the previous quarter. But analysts say it still takes too long for the group to bring new products to market and it has been left trailing by the likes of Apple's iPhone and smartphones from companies such as Samsung Electronics Co and HTC Corp. IDC analyst Francisco Jeronimo said the group -- which dropped behind HTC to ninth-largest phone maker by volume -- risks remaining a niche player if it does not expand its offering beyond the top end of the market. "They are not Apple. I do not see a bright future for them if they do not do more," Jeronimo said. Sony Ericsson posted a quarterly pretax profit of 15 million euros ($21.3 million), beating an average analyst forecast for a loss of 24 million, but within a wide range of estimates. Revenue missed forecasts as Sony Ericsson sold just 8.1 million phones in the quarter, below all expectations, and giving it market share of just over 2 percent, the lowest level since the venture was formed 10 years ago. 1 2 Next Technology Japan Tweet this Share this Link this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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