High-end phones: Low-end sales

19 March 2008 By Una Galani Follow @ugalani

These days having an edge on technology is typically a winning strategy. Yet a profitwarning from this handset maker proves that s not always the case. Weak highend sales are dragging it down. Consumer preferences are a problem, and a global economic slowdown won t help.

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Sony Ericsson on Wednesday said slowing sales growth of midtohigh end mobile phones would depress sales and net income before tax in the first quarter by almost a half.

The company, whose share of the high end market is bigger than the industry average, also blames a shortage of component parts for popular midpriced phones for modest sales growth.

Sony Ericsson, which is a joint venture between Japan's Sony and Sweden's Ericsson, is the world's fourth largest handset maker behind Nokia, Samsung and Motorola. It is due to report first quarter results on April 23.

In midmorning trade, shares in parent Ericsson were down 11% at Skr10.27.

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