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on to Motorola, which stumbled by relying heavily and too long on its once hot-selling Razr series. Lower market demand and delay in launching of products planned are main reasons for lower revenues.

行业销售下滑——Sales Falling Across the Industry

It was Sony Ericsson's second profit warning of the year. After first quarter, the mobile manufacturer reported a 47% year-over-year reduction in pretax profits, to $304 million, on account of sales down by 8%, to $4.2 billion. Sony Ericsson declined requests to make available their executives to discuss its financials or market conditions in the 2nd quarter. The conditions are similar to the whole mobile manufacturing industry to some extent. Handsets sales fell 16% in Western Europe in the first quarter which was the first such decline recorded since 2001. There are indications that weakness is spreading elsewhere as well.

The numbers are heading down due to the recession in economy. In Western Europe, spending-conscious buyers are not buying high-end models in favor of midrange alternatives that often are coupled with free with prepaid service contracts. And in emerging economies, which have been the growth driver for the mobile phone industry in recent years, handset owners are not buying high end handsets as they have to meet their rising expenses for food and fuel. This delay economy recovery especially lowers Sony Ericsson and Samsung revenues significantly. These mobile manufacturers' sales rely more on replacement sales in emerging markets than on first-time handset buyers.

西欧过于集中——Too Concentrated in Western Europe

The trends are tough for everybody, but Sony Ericsson is being hit harder than most of its rivals. In the first quarter of 2007, the London-based company posted global sales growth of 64%.

A year later, that had fallen to just 2%, and sales are now declining, says Neil Mawston, director of the global wireless practice at researcher Strategy Analytics in Milton Keynes, England. As a result, Sony Ericsson's global market share has slipped from a high of 10% in the second quarter of 2007, to 8% in this year's first quarter, knocking it from fourth to fifth in global ranking behind Nokia, Samsung, Motorola, and LG Electronics.

Macro trends explain only part of the problem. Analysts say Sony Ericsson also has made a number of missteps that have cost it momentum. For one thing, while competitors like Nokia have spread their bets around the world, Sony Ericsson's sales are still concentrated heavily in Western Europe. “This market is clearly the weakest globally today and seems to be heading for another year-on-year decline in units and revenues in the second quarter,” says a research note from Dresdner Kleinwort. Forecasting only a gradual improvement in Sony Ericsson's profit margins, the brokerage on June 30 cuts its forecast for co-parent Ericsson.

Sony Ericsson also continues to be weak at the low end of the market, where the strongest growth is happening. The phone maker can't come close to matching Nokia's economies of scale and global distribution for phones priced at $30 or less crucial to expansion in emerging markets, analysts say. To help remedy the problem, S本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。