Sony Ericsson Has Component Shortages After Japan Quake

By

It appears that Sony Ericsson is finding itself short on components after the Japanese earthquake, Reuters said.

There are shortages of displays, batteries, camera modules and printed circuit boards, Sony Ericsson CEO Bert Nordberg said.

The shortage may be “stabilizing” for a while but is expected to have a “bigger impact” during the second quarter of 2011, Reuters said.

"We are now fighting for parts with bigger players," Nordberg told Reuters in an interview.

Sony Ericsson was working with its parent companies, Sony and Ericsson, to have more influence in talks with parts makers, Reuters adds.

In addition, Toshiba said operating profits fell below forecasts because of the earthquake, tsunami and power disruptions, Reuters said. And Texas Instruments had slower-than-usual quarterly sales growth, Reuters added.

Sony Ericsson said the impact of the quake was “limiting volumes in its new smartphone offerings and delayed the wider launch of its neo model to the third quarter.”

Both second and third quarters could see difficulty because of the problems in Japan, Gartner analyst Carolina Milanesi told Reuters.

The Japan earthquake has also led to an impact on Sony Ericsson's supply chain and operations, as “shipments falling a considerable way short of expectations," CCS Insight analyst Geoff Blaber told Reuters.

"This is a challenging situation for Sony Ericsson, but with lowered operating expenses and continued improvement to gross margin, it is at least in a better position to weather the storm than it was 12 to 24 months ago," Blaber added in the statement to Reuters.

Operations at several Sony facilities have been affected by the earthquake and tsunami, and related power outages in Japan, according to TechZone360.

Given the widespread power outages, Sony last month voluntarily suspended its operations at several sites, TechZone360 said. In addition, Sony hoped to release a handheld gaming system, the PlayStation NGP, by November 2011, but production of the device slowed down because of the earthquake and tsunami, according to NG Portable.


Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Tammy Wolf

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More