Sony Ericsson may be headed for splitsville
Sony Ericsson's president of North America, Najmi Jarwala, has stepped down amid rumours that the joint venture between the two companies may soon be dissolved.
The announcement comes at a dismal time for Sony Ericsson. The company is expecting first-quarter losses of between 340 million euros (US$459 million) and 390 million euros ($526 million).
The company expects to ship just 14 million phones in the first quarter, down 42% compared to the fourth quarter of 2008, when Sony Ericsson sold 24.2 million phones. The average selling price for the phones is expected to be 120 euros ($162).
Last quarter, sales at Sony Ericsson were down 23% compared to the fourth quarter of 2007. The company said the decline in year-over-year sales was driven by lower volumes, due to the global economic slowdown that resulted in contracting consumer demand and decreased availability of credit.
Sony's stock was down .05% to $21.68 per share in mid-day trading on Tuesday.
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