Sony Ericsson sees net profits fall 97%, looks to cut 2,000 jobs

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Sony reported its second quarter earnings today, and while the company's overall profits were up, at ¥90.5B ($790M), the Playstation division's losses for the quarter came in at ¥96.7B ($844M), double those of a year ago. Sony says that once it's done accounting for all the recent PS3 inventory changes, it hopes the Playstation division will break even -- potentially in the second half of the fiscal year. Of course, since the PS3 is sold at a loss, the numbers might indicate that Sony's selling more PS3s than ever, but something tells us that's not exactly the plan.
Sure, Apple's profitability and viability is based on any number of factors, but there's one figure that analysts have been training their calculators on for months that has finally seen the light of day: Apple sold 1,119,000 iPhones in Q4 2007, which ended on September 29th, bringing the grand total to 1,389,000 since launch. That might meet or miss your expectations, but other sales bringing a smile to Jobs' face and a cha-ching to his wallet include a 34% growth in Mac sales year to year and a 17% growth in iPods year to year -- with 10.2 million iPods sold last quarter. The earnings call hasn't started just yet, so hopefully we'll get a few more juicy details on how much AT&T is chipping in to the bottom line these days.
It's already been a rough year for Dell's dwindling market share much to the delight of HP and Apple. Now, as followup to the evidence of accounting errors and misconduct announced back in March, Dell has admitted that their senior / executive management regularly falsified quarterly financial returns from 2003 to 2006. In a filing with the SEC, Dell admits that "account balances were reviewed, sometimes at the request of senior executives, with the goal of seeking adjustments so that quarterly objectives could be met." In only one case did Dell actually invent sales numbers, usually, the shifty accounting involved the recognition of revenue earlier than appropriate. Dell must now reduce its reported net income for the period by as much as $150 million with the biggest downward restatements hitting Q1 2003 and Q2 2004 by 10 to 13 percent -- other quarters are expected to be 5 percent or less. It's unclear whether any of the management responsible for, or engaged in this malfeasance are still employed by Dell. Dell's CFO only said that "disciplinary action had been taken" and that current management and the board are "comfortable we have taken steps necessary to make sure this never happens at Dell again." Dell's stock is actually up a few points in pre-market trading which could be a sign that investors aren't too concerned by the piddley restatement (Dell posted $12 billion in net income during the period in question) and are stoked to see Dell finally move forward, undistracted. That is, if the SEC agrees. We'll see how the stock does once investors wake to the latest fetor to seep outta Austin this side of SXSW.

In a fairly tame show of initiative, Hynix, a South Korean company you've probably never heard of, has announced its plan to become the world's leading chip producer over the next ten years. The company, currently the world's fifth largest memory chipmaker, claims it will boost sales from last year's $7.7 billion to $18 billion in 2010 (the year we make contact), and to $25 billion by 2012 (when the Mayan calendar ends and we're all supposed to eat it). Hynix plans to gain ground by eagerly developing new technologies, and with the introduction of a new type of memory chip called Phase-change Random Access Memory (PRAM, but not of Apple fame). Analysts say PRAM will become the industry's main memory source, replacing flash storage over the next decade. Meanwhile, architects in Korea are working feverishly to design a room in the new Hynix headquarters large enough for president Jong-Kap Kim's head.
While earlier estimates suggested that AT&T would make out like gangbusters considering just how many iPhones it reportedly moved as Q2 came to a close, investors aren't reacting fondly to the firm's latest report. Even though the telco posted a $2.9 billion increase in net income and sales of $29.5 billion, it "only" managed to activate 146,000 iPhones -- which sent Apple's stock tumbling up to 6% (read: billions). Notably, some 40-percent of those iPhone buyers were new to AT&T, which helped to slash customer turnover to a record low, but it's not surprise with previous estimates as high as 1m+ iPhones sold, these numbers didn't exactly impress Wall Street; Piper Jaffray & Co. analyst Gene Munster even went so far as to call the amount of iPhone activations "a disappointment."
We're sure Verizon's been having a blast with their American exclusivity on the Motorola Q, but the fun and games are about to come to an end -- and another domestic carrier's Windows Mobile-loving customers have cause to celebrate. COO Len Lauer spilled the beans during Sprint's earnings call Thursday, revealing that the company is planning to pick up the honorary RAZR of smartphones (the Q, that is) sometime in the fourth quarter of this year. Speaking of RAZRs, the Moto love continues with a SLVR and RAZR (the V3m, perhaps?) coming down the pike. Between this and the announcement that their Rev. A deployment is ahead of schedule, the good news nearly outweighs the bad stemming from the "earnings" part of the earnings call -- not surprisingly, some analysts are speculating that profits fell short due to Sprint's failure to offer a RAZR thus far.








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