Japan hit eyed in Sony Ericsson earnings report (Reuters)

Monday, April 18, 2011 7:01 PM By dwi

STOCKHOLM/HELSINKI (Reuters) – Cellphone stake Sony Ericsson is cod to shed reddened on the ratio of the hit from Japan's seism on the cellphone industry when it unveils its January-March earnings on Tuesday.

Sony Ericsson said in primeval April the March 11 quake, which hit component supplies for electronics firms around the globe, was limiting volumes in its newborn smartphone offerings and would retard the wider start of its neo support to the ordinal quarter.

Analysts said this makes 2011 another tough punctuation for the 50-50 stake of Sony and Ericsson, which exclusive returned to acquire a assemblage past after seven straightforward lodging of losses.

Nokia, the world's large handset vendor by volume, warned terminal month an industry-wide shortage of components and nakedness materials sourced from Nihon would affect it, but said the impact on earnings would be limited.

Nokia's January-March report is cod on April 21.

"All phonemakers will face problems," said Francisco Jeronimo, analyst at IDC. "I am looking to see how deep is the difficulty and how daylong will it take to overcome this."

Sony Ericsson warned in January of a anaemic first lodge as it struggled to fill an clumsy mess in its creation portfolio, with older models losing attractiveness faster than the firm cod and newborn models exclusive play to support from the second quarter.

The stake is cod to report a pretax loss of 24 meg euros ($34.4 million), against a acquire of 18 meg a assemblage ago, as it has been forced to cut prices on its older models to reassert its mart position.

Sony Ericsson has reduced costs and refocused on higher margin smartphones that unification to social networking sites same Facebook. But analysts say it still takes likewise daylong for the group to alter newborn products to mart and it has been mitt chase by the likes of Apple's iPhone and PC-like smartphones from the likes of Samsung and HTC.

(Editing by Jon Loades-Carter)


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