Sony Ericsson hit by supply chain woes

By Freddie Pierce
As expected, the second quarter was rough for Japanese electronics companies. Mobile handset leader Sony Ericsson was hit hard by the Japan disaster, a...

As expected, the second quarter was rough for Japanese electronics companies.

Mobile handset leader Sony Ericsson was hit hard by the Japan disaster, as problems in the company’s supply chain caused a second-quarter net loss.

“We estimate that the impact of earthquake-related supply chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter,” Sony Ericsson Chief Executive Bert Nordberg told the Wall Street Journal.

Disruptions in the company’s supply chain forced a delay of the launch o the Xperia Neo Phone until the third quarter, as revenue also fell to €1.19 billion.

Thanks to the supply chain shortages, shipments also fell in the second quarter, as Sony Ericsson shipped 7.6 million units during the quarter, a 31 percent decrease from last year.

SEE OTHER TOP JAPAN STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK

Why the Japan disaster can help supply chains

Bank of Japan raises economic outlook

Japan’s supply chain sees some improvement

Check out July’s issue of Supply Chain Digital!

There was a bit of good news for consumers, however, as the average price of a Sony Ericsson handset fell from €160 to €156.

Despite the supply chain shortages, Sony Ericsson plans to continue its push in the Smartphone department.

“Our shift to Android-based Smartphones continues with Smartphone sales accounting for more than 70 percent of our total sales during the quarter,” Nordberg said.

The company estimated that its global Smartphone market share was approximately 11 percent by both volume and value.

Share

Featured Articles

EY: GenAI in supply chain 'hampered by roadblocks'

EY Principal of Supply Chain & Operations Sumit Dutta says GenAI use cases show promise but that adoption is hampered by skills shortage and legacy

Sustainability LIVE Net Zero to Focus on Scope 3 Insights

Sustainability LIVE Net Zero event being held in London from March 6-7 offers insight, advice and discussions around supply chain sustainability

SAP: US, UK & India elections 'will impact supply chain'

SAP Business Network SVP Tony Harris warns business leaders to prepare for more supply chain disruption following key elections in US, UK and India

Appian & Xebia to share AI-driven S&OP Insights

Technology

COMING SOON: Top 100 Women in Supply Chain 2024

Sustainability

Supply Chain Optimisation 'Stymied by Data Silos'

Digital Supply Chain