Sony Ericsson Experiencing Slow Mobile Phone Sales Causing Share Fall

Mobile phone manufacturer Sony Ericsson is experiencing a slowed sales growth which has affected badly on the shares of the company. In particular, the situation is more acute for the high-end phone sets of Sony Ericsson. ERIC shares of Ericsson fell by 10.3 percent to 29.33, lowest in four years. Shares of Sony (SNE) fell by 1.9 percent. The possible reasons behind the share fall are slowing growth of high-end phones and the fears of economic slump.

Sony Ericsson is a joint venture of Sony Corporation of Japan and Ericsson of Sweden. Dick Komiyama, the president of Dick Komiyama said:

“The market is proving to be challenging. This has been pronounced in the mid- to high-end replacement sector of the market in Europe, where we have a stronger-than-average market share.”

The average sales price of Sony Ericsson is $189, while Nokia’s average sales price is $129. Now, Sony Ericsson is suffering mostly in the high-end phone markets, where they are facing strong challenges from Apple AAPL iPhone and Nokia’s N95. So, it is certain the high-end market has become tougher for Sony Ericsson at present.

Sony Ericsson