Sony Ericsson has just released their earnings report for Q1 2008, and while the company spin is that it’s been positive the figures themselves suggest an organisation with little movement. Reporting 2% growth over last year, handset sales were actually down and operating income almost half what it was in Q1 2007. Sony Ericsson counters with the fact that their income was in the higher end of their forecast, and that they added a new sub brand, the XPERIA line.

Admittedly, Q4 is expected to be large as the holiday season is very busy for all businesses, especially when it comes to the mobile industry.  However comparing like-to-like with the previous year, handset sales are almost stagnant compared to rivals and sales revenue is down. This is due to that bottom number, showing that the average price of a handset bought from Sony Ericsson is down €13. 

There is some good and some bad, overall, but while Sony Ericsson are hoping to chalk it up as an even quarter, analysts and investors alike will be disappointed.  There has been no shortage of leaked handsets from the company over the past few weeks, looking a fair bit more impressive than what was last officially announced.  They really need to roll out some headline-grabbers over the next quarter unless they want to be considered the new Motorola.