Wednesday, April 20, 2011

Sony Ericsson Experience Scarcity Components

Japanese quake was felt the impact of technology companies, including Sony Ericsson. Vendors Japanese-Swedish joint venture was experiencing scarcity of supply of components and have to fight with the rivals to get it.

Sony Ericsson's chief executive, Bert Nordberg, stating that there was limitation of screen components, batteries, camera module and several printed circuit boards related to the Japanese earthquake which occurred on 11 March.

Although the situation in Japan gradually stabilized, the shortage is feared to remain influential in the supply of Sony Ericsson handsets in the second quarter of 2011.

"We are now fighting with other players to get bigger components," Nordberg said, as quoted by Reuters on Wednesday (20/04/2011).

Inevitably, this component shortages feared to affect the company's declining profits. Previously, Toshiba Corp. has said its operating profit expectations are not suitable because of the disaster.

Sony Ericsson claimed the earthquake in Japan has limited the volume of smartphone. It also makes new handset Neo delayed in some areas. Situation is considered less profitable because they are struggling against rivals in the smartphone market.


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