It is well known that handset maker Sony Ericsson follow leader Nokia in terms of market share. But the company bitterly followed the leader in registering losses as recorded by Nokia for Q1, 2009.

Sony Ericsson managed shipments of 14.5 million for Q1 at a 35 % decrease on y-o-y basis. Revenues too declined 36 % to reach euro 1.7 billion. Net loss for the period was recorded at euro 293 million as compared to a profit of 133 million recorded during the corresponding quarter last year.

The average selling price of its handsets dipped by one euro to stand at euro 120. Market share decreased to 6 % at two percentage points decline sequentially.

The company claims to have net cash position of Euro 1.1 billion.

“Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels,” said the company.

“As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand.  We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible,” said Dick Komiyama, President, Sony Ericsson. “The management intends to pursue an additional cost saving program targeting a further annual operating expense reduction of Euro 400 million, to be completed by mid-2010.”

The company announced another 2000 job cuts in addition to the earlier announced slashing. The restructuring charges for the new job cuts are estimated to be $ 200 million. The company said that the earlier job cuts resulted in restructuring charges of $ 128 million as compared to expected charges of $ 300 million.