Sony Ericsson is hurting. Having just cleared a dismal holiday quarter last year and looking an even worse Q1 2009 straight in the eye, the Japanese-Swedish joint venture known has been rumored to be headed toward a break-up. Ericsson today publicly squashed rumors that Sony was looking to buy Ericsson’s stake in Sony Ericsson, stating that Ericsson is “committed to the joint venture…we haven’t changed our view on that.”
Sony Ericsson is expecting to go upwards or $533 million into the red for this first quarter, and has announced that its chief of North American operations will be stepping down later this month. Weakened consumer demand coupled with a lack of affordable smartphones has hurt Sony Ericsson’s short-term prospects, but the company is looking forward to making a comeback with the launch of the Sony Ericsson Idou.
Ericsson is apparently on-board to see the Idou become reality. Sony Ericsson’s future status as a joint venture could very well ride on the Idou’s success.
[Via: MocoNews]