Sony Ericsson predict poor results for first quarter

March 25, 2016

Sony Ericsson’s Taiwan-based component suppliers are predicting a downturn in orders for the first half of this year after Sony significantly revised its projected sales figures for the first quarter.

In a press release last week, Sony Ericsson revealed the growth in the market for mid-end and high-end phones has seen a heavy slowdown. This will affect the company’s net sales and net income before tax.

Taiwan-based suppliers to Sony Ericsson include Merry Electronics and Silitech Technology. Merry declined to comment on the announcement, but said that its first quarter results will not be as high as originally anticipated. Merry is expecting first quarter revenues to fall between 8 and 12% compared to the fourth quarter of 2015. Original projections set the figure at 5%.

In spite of this, Merry is still setting its sights high this year, aiming for an on-year growth in revenues of 50%.

Silitech also made no comment on the announcement, but did say that it doesn’t rely on any single vendor for its orders, so slowdown in a single vendor’s sales is unlikely to affect orders.