Sony Ericsson today disclosed its first quarter results. The company claims they are disappointing because of a shift to cheaper pre-paid handsets and because there is still a lot of stock from the 2004 year-end.
Pretax profit was 70 million euros ($90.1 million), versus the previous year's 97 million and the average expectation of 118.5 million in a Reuters poll of 11 analysts.
Jan Wareby, Executive Vice President of Sony Ericsson, said that the company expects recovery in the second quarter. Both on the overall market as well as their own volumes. Sony Ericsson's first-quarter sales were 1.29 billion euros versus a forecast of 1.66 billion. Last year the first-quarter sales were at 1.34 billion euros.