Following up disappointing earning results from both Research in Motion (RIMM) and PALM last week, Sony Ericsson Mobile Communications AB issued another profit warning Friday, saying second-quarter sales and profit would be hit by slowing demand and a delay in shipping new products.
The profit warning is the second in as many quarters as the mobile-phone maker continues to be hit hard by a weakening economy in Western Europe, hurting demand for the mid- to high-end handsets it specializes in. In contrast, rival Nokia Corp. has a much broader portfolio of devices in the low and midtier segments, as well as higher sales in emerging markets. Battle for smartphone market share pressures margins.
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