Archive for the ‘technology companies’ Category

Steep drop in phone sales, says Sony Ericsson

Wednesday, April 8th, 2009

Sony Ericsson has recently issued the profit warning sheet which said that for the first quarter of 2009 they would sell nearly 14 million cell phones so has to make up for their just 8.3 million phones that were sold from the same last year period. Sony Ericsson also expects to post the s€340 million to a raised €390 million annual loss over taxes which exclude €10 million to around €20 million over the restructuring charges. The company would soon announce their first quarter results by the 17th of April. However for the first quarter of the previous year the company had sold around 22.3 million cell phones and had made around €133 million net profit.

According to the company’s statement their drop in sales had also increased their net losses which are the result of weak consumer demand and the slowing down of retail orders for new stock. During the year 2008, Sony Ericsson had announced plans to cut down the costs by nearly €300 million annually which had put down nearly 2,000 people. According to Carolina Milanesi the Gartner analysts, this news however does not come as a surprise. She said that the cell phone market has already picked up very little during the first quarter but not in the markets where Sony Ericsson is dependent. According to Carolina Milanesi , the sales of the company have taken a fall down turn because of the economic downturn, but this is obvious that their portfolio does not stand out any further.

Melanesi said that camera and music player have also become more extensive among the portfolio of their competitors which place more pressure on Sony Ericsson. She further added that Sony Ericsson still does not have a pure touch screen phone launched in the market. In the month of February 2009, the company had announced their Idou which is a pure touch screen mobile, designed with Xenon flash, 12.1 MP camera and an impressive 3.5 inch widescreen display. However it would not ship until the second quarter of 2009.

Additionally this profit warning also comes because Sony Ericsson is supposedly looking to exit the joint business with Sony think that Sony is perhaps overtaking them. However a spokesperson said that Sony Ericsson is still entirely committed to the joint business while other spokesperson said that the company does not to comment on their reports. On this Milanessi said that it will basically make sense for Sony to take over the joint business as Sony count integrate more if their technologies into other mobile devices. However Sony has also complained about the joint business with Sony Ericsson that the yare not making money and so it would only dampen the enthusiasm of the company to take over them.

AMD contemplates spin-off chip manufacturing

Wednesday, March 4th, 2009

Advanced Micro Devices Inc or AMD which is a leading company in manufacturing chips in the industry has said that it has finally got enough votes from the stockholders in the favor of spinning of the chip manufacturing operation of the company and also to approve the plan, after their initial attempt failed during the last week which was due to the lack of quorum.

The approval of stockholders would take AMD a huge step near to splitting off their chip plants into a separate company. It is a move that is aimed at letting the semiconductor chip maker to become more viable against Intel Corp. however it was also reported by AMD about their 9 quarterly losses and also about laying off workers as they expect to unload nearly $1.2 billion of debt including their manufacturing expenses through this spin-off plan. Apart form this AMD also said in an announcement about their stockholder’s vote that, the transaction which is an investment firm that is controlled by the Abu Dhabi government in the United Arab Emirates would also take over most part of the ownership over the chip plants. This is now expected to be completed by the 2nd of March.

However, even today, there were just hardly enough votes cast at the continuation of the special meeting of the stockholders to endorse the spin-off. A spokesperson of AMD said that nearly 50.26 percent of share owners of AMD cast ballots, while around 95 percent of the votes were in the favor of the proposal. The company had postponed the scheduled vote session last week after they failed to get the essential minimum of 50 percent turnout during the first stockholder meeting. According to AMD, The votes were received just for 42 percent of the shares of the company during that point

AMD the chip maker also announced the manufacturing spin-off much earlier by saying that the company will focus on the chip design and the marketing while also shift manufacturing to an entirely new which is currently called as the Foundry Co. AMD would hold around 34.2 percent of the ownership stakes for the manufacturing business while the remaining would be owned by Advanced Technology Investment Co based in Abu Dhabi. The company would have originally owned around 44.4 percent but the ownership position of the company was reduced in December after the faced a value drops in their stocks. According to the market research firm IDC, the spin-off would take over the chip plans in Germany and in the United States from AMD as the PC microprocessors shares of which in unit shipment had fell to around 17.7 in the last four quarter of last year. IDC further said that, it had been even down to around 23.1 percent during the forth quarter of the year 2007whcih had put the shares of Intel to Q4 processor shipments at around 81.3 percent and so there was this decision taken by the IDC.