Things haven't looked great for Sony Ericsson -- which reported its sales were down 50% during the first quarter. Dropping market share and falling handset sales made it lose hundreds of millions of dollars during the last few months. And, contrary to Motorola, they can not rely on a parent company to cover those losses as the coffers run dry.
Sony CFO has been talking to Nikkei News and acknowledged the problem, which is a combination of falling demand and a gap in the product portfolio, before the new handsets get into the market.
According to him, Sony Ericsson will need to raise 100 million EUR this fiscal year (ends in March of 2010) to keep going. They are considering various financing options for that, including loans or equity injection from parent companies, or the issue of new shares.
According to a Sony spokesman, Sony and Ericcson will jointly discuss and decide the fund-raising details later. Well, we wish them good luck!
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