First quarter results see Sony Ericsson Mobile reporting losses of 400 million Euros as sales of their handsets decline by 23%. The company states this is due mainly to low demand by retailers and distributors.
As a result they are having to lay off of 2,000 employees.
Their sales target is 15 million mobile phones in this quarter and have set to increase this to 25 million by the last quarter of the year. They'll try to regain strength in the second half of the year by cutting costs and concentrating on high-end expensive mobile phones.
Sony Ericsson chairman, Carl Henrico expressed confidently "we'll do good business in the next few months and results shouldn't be based on first quarter performance".
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