Japan hit eyed in Sony Ericsson earnings report (Reuters)

Monday, April 18, 2011 7:00 PM

STOCKHOLM/HELSINKI (Reuters) – Cellphone stake Sony Ericsson is due to drop reddened on the ratio of the effect from Japan's seism on the radiotelephone industry when it unveils its January-March earnings on Tuesday.

Sony Ericsson said in early April the March 11 quake, which effect component supplies for electronics firms around the globe, was limiting volumes in its newborn smartphone offerings and would retard the wider launch of its neo support to the ordinal quarter.

Analysts said this makes 2011 added tough period for the 50-50 stake of Sony and Ericsson, which exclusive returned to acquire a assemblage past after heptad straightforward quarters of losses.

Nokia, the world's large handset vendor by volume, warned last period an industry-wide insufficiency of components and nakedness materials sourced from Japan would affect it, but said the effect on earnings would be limited.

Nokia's January-March inform is due on April 21.

"All phonemakers module grappling problems," said Francisco Jeronimo, analyst at IDC. "I am hunting to see how deep is the difficulty and how daylong module it verify to overcome this."

Sony Ericsson warned in January of a weak prototypal lodge as it struggled to modify an clumsy mess in its creation portfolio, with old models losing appeal faster than the concern due and newborn models exclusive starting to support from the second quarter.

The stake is due to inform a pretax expiration of 24 meg euros ($34.4 million), against a acquire of 18 meg a assemblage ago, as it has been forced to revilement prices on its old models to maintain its mart position.

Sony Ericsson has reduced costs and refocused on higher margin smartphones that link to ethnic networking sites same Facebook. But analysts feature it ease takes too daylong for the assemble to alter newborn products to mart and it has been mitt chase by the likes of Apple's iPhone and PC-like smartphones from the likes of Samsung and HTC.

(Editing by Jon Loades-Carter)


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