According to Sony's latest earnings report, the company's profits have dipped to almost half of what they were at this time last year. Analysts are citing a strengthened yen, the lack of a major Hollywood blockbuster like Spider-Man 3, and continuing issues with its mobile phone arm as core reasons for the slide. It's no surprise that the company is taking a hit, especially after the outrageously poor performance of Sony Ericsson, though the numbers reveal that even improved sales of the PS3 this quarter can't sustain losses from core businesses like Sony BMG and fluctuating currency rates. Looks like the champagne will have to stay in the fridge this quarter.

Sony Ericsson warned the world just over a fortnight ago that things wouldn't be too rosy when it came time to announce Q2 results, and rosy things are not. Even though the handset maker was hoping and praying to break even at the end of the quarter, net profits ended up falling through the floor to the tune of 97%. As predicted, weak sales of mid-to-high-end mobiles were blamed for the bulk of the bad news, and it did affirm that conditions would remain rough for the rest of the year. Granted, the looming launch of the Xperia X1 should help matters a bit, but without a new stable of low-end cellies to send to emerging markets, it'll be a long road back to the top. Unfortunately, SE's sagging position in the market has left it slashing 2,000 jobs across the globe, though it didn't say exactly where the cuts would be made. It's okay SE, there's only one place to go when you're laying on the bottom... or something like that.

[Image courtesy of Flickr]

Read - Sony Ericsson's Q2 earnings
Read - Sony Ericsson plans job cuts

Although Sony Ericsson just churned out a rather impressive array of new handsets this month, it seems the outfit is still having trouble securing record-setting profits. Truthfully, it's struggling to break even, as evidenced by the second profit warning of 2008 that was issued last week. SE is pinpointing "disappointing European sales of its mid- and high-end mobile phones" as the reason it will likely not see a profit in Q2, and some analysts are suggesting that shipment delays and a dearth of low-end handsets also carry a share of the blame. 'Course, the hotly-anticipated Xperia X1 could certainly make for a lovely Q3, but only time will tell if enough folks shell out for it to make a difference.

A year ago today Toshiba was announcing ¥26.17 billion in profits for the quarter. Today, just ¥1.25 billion or about $12 million. In addition to the $580 million hit on account of its withdrawal from HD DVD, Toshiba also saw a swift decline in flash memory prices. While bad news for Toshiba on all accounts, we consumers are basking in a market dominated by a single high-def optical disc standard and cheap NAND and DRAM pricing. Sorry Tosh, but you won't find any tears around here.

After bleeding red for months, Sony's games division finally turned a profit last quarter. Sony sold 4.9 million PS3s last quarter after slashing console prices, boosting game titles, and cutting production costs internally. Of course, we're sure Wii shortages aren't hurting Sony's bottom line either. Sony did lower its annual sales goal of PS3s from 11 million to 9.5 million (citing a slow start) while increasing PSP projections to 13 million from 10 million as originally expected. Sony's fiscal year ends in March. Overall, Sony's profits rose 25% for the quarter. Welcome back to black Sony, it's been a long time coming.

Just as forecasted, Research in Motion has delivered quite the Wall Street-pleasing results in the fiscal third-quarter. The BlackBerry maker's recently released numbers showed a staggering $370.5 million profit compared to "just" $175.2 million in the same quarter last year. Furthermore, the firm's Q3 revenue rose to $1.67 billion from $835.1 million last year. According to co-CEO Jim Balsillie, it's pretty "clear [that] BlackBerry smartphones have crossed over from being viewed as a primarily enterprise product to being marketed as a strong mainstream offering," and considering the results, it's hard to argue that point. Oh, and just in case you haven't seen enough digits in one post, it should be noted that RIM shipped out more than 3.9 million handsets and added around 1.65 million BlackBerry subscribers in Q3, also. Not too shabby, eh?

Unlike video game consoles, phones are typically profitable to manufacture from day one and it turns out that the iPhone is no exception -- far from it, in fact. Teardown specialists at Portelligent claim that the 4GB iPhone runs Apple just $200 worth of components, while the 8GB adds an extra $20, not far off at all from iSuppli's slightly higher estimates from January. Granted those tallies don't include the actual cost of assembling the device -- but even so, those numbers are very far cries from the $500 and $600 asking prices at the register, leaving a healthy $299 and $379 respectively (of which an overwhelming majority are $379) for profit and miscellaneous costs. Interestingly, Portelligent's unceremonious destruction of an iPhone in the name of research revealed no further proof that Hon Hai / Foxconn is the ODM responsible for assembling the darned thing.

It's fairly safe to assume that Microsoft as a whole ain't hurtin' in the wallet, but for its Xbox platform, the positive cash flow is (possibly) just around the corner. According to an interview with Robbie Bach, president of Microsoft's Entertainment and Devices Division, the firm's gaming business "will be profitable next year," which will certainly be a breath of fresh air considering how much loot it has been losing for years in the arena. Still, it's not like any major competitors aren't suffering through the same pains, and while the Big N is smiling all the way to the bank with the profits it makes on every Wii sold, we're glad that at least a few consoles are offering up high-definition and true online play regardless of the cost. Obviously, the continual decrease in component costs are making the consoles cheaper to produce, but Bach went so far as to point out that (overpriced) peripherals, an increased user base on Xbox Live, and software sales would be the primary margin drivers next year. So now that the Xbox 360 is looking rosy, what's to be done about the Zune?

[Via Joystiq]

So it's one thing getting people to contribute their spare processor cycles to a noble cause like Folding@Home, but it would be quite another convincing gamers to leave their PS3s on at night so that large companies -- like the ones that they perceive screw them over on a regular basis -- can solve tough problems and make even more money. Yet the Financial Times is reporting that Sony has already fielded several inquiries from private firms keen on doing just that, harnessing the power of all those idle Cell processors to simulate a relatively cheap cheap supercomputer; of course, this leaves the Japanese giant in a sticky situation of trying to capitalize on that interest in the wake of a likely backlash from owners. The simplest solution? Offer gamers a carrot, or in this case, free points, products, exclusives, etc., etc. -- something so they feel like they're profiting too, and ideally, in direct correlation to the amount of time they donate. So far this is only speculation and conjecture, though, so turn down that beeping on your swag radar -- and make sure that whatever you do, you don't let Sony bribe you into giving up all your Folding donations for a few bonus game maps and a bunch of stickers for your controller.

[Via Joystiq]

Sure, LG's KE850 Prada handset will set users back a cool $778, and the Google Switch just might pop in to make things a bit more interesting, but a recent research report has unveiled that Apple's sure-to-be-sold-out iPhone is a lean, mean, profit-generating machine nonetheless. While Apple's well-known for selling its iPods (and to a lesser extent, its Macs) for much, much more than it cost to manufacture, even we're a bit taken aback at how hard those corporate buyers must be workin' those suppliers on this one. According to iSuppli (no affiliation with Apple, of course), the 4GB iPhone will yield a "49.3 percent profit margin on each unit sold at the $499 retail price," while the 8GB rendition will kick back a 46.9-percent margin. You heard right, they're supposing the $499 mobile only costs Apple $245.83 to produce, while the 8GB flavor demands just $264.85. Of course, this isn't the first time a hot-selling product has been broken down by the numbers to prove just how ripped off we're all getting (if these numbers are to be trusted, that is) -- but hey, unless you've got the means to buy capacitors and LCD touchscreens by the boatload, you're probably stuck paying exactly what they ask. Plus if all this sudden competition gets a bit too heated, don't think Apple doesn't have any room to introduce a (highly desired) price drop.