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Bboid on 23 January 2009
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NJ5 said:
Bboid said:

 

Probably because Ericsson has showed a major downward trend with no practical turnaround in sight.  The Gaming division is operating at a loss but that loss has been consistently shrinking meaning they are still in an upward trend (at least until final Q3 numbers are released, preliminary data shows the yen inflation might hinder this).  The gaming division will be kept around basically due to the upward trend and possible profitability next fiscal year.  Sony Ericsson just flat missed the boat in the phone trend (along with most sony divisions with each of their industries).

But they haven't been consistely improving (as I recall it, they were profitable in the previous holiday quarter but not in the following ones)... I guess if you look at it on a YoY basis you'd be right, but probably not anymore as soon as they post this holiday quarter's results.

Anyway, I'm not saying the gaming division will be canned. All I'm saying is that Sony Ericsson is not doing worse, so I don't understand why people are ready to burn it at the stake.

 

 

Holiday quarter for 07 had large PS2 sales numbers and the ps2 is basically dead in sales now, so it would be expected for their to be a loss in holiday 08.  Aside from the stray quarter they are in an upward trend still.  I'm not sure how their staffing structure is but I would suspect they would eventually minimize management roles (combine duties and axe redundent positions like many retail industries do).  Long term trend wise sony Ericsson is doing far worse.  Aside from their partnership with Samsung for some new phones (I'm not even sure if they are still running with this but as of Dec they were) they have nothing that interests anyone in the phone market. 

 

I'm not disagreeing with what you are saying but this seems to be the likely train of thought for the proposed cut of Sony Ericsson.  I can see both sides though.