Sony Ericsson Hit by Shortages of Xperia Phones

The Xperia Neo. (Mouse click to zoom)

Sony Ericsson faces shortages of three new flagship cell phones later on Japan's earthquake and tsunami disrupted supplies of key components, it said Tues.

"The smartphone industry relies along northern Japanese Islands as one of the largest producers of components and bomber-components," said Bert Nordberg, president of Sony Ericsson. Nordberg was speaking in a conference song held to announce the cellphone Maker's results for the first three months of the year.

The double natural disasters of Edge 11 and a subsequent nuclear-plant crisis caused massive disruption to businesses across most of Orient Japan. Some companies sustained channelize damage to their factories while others rich person been incapable to render components collectible to problems with distribution, availability of raw materials or electricity shortages.

Businesses in the region are bouncy back, but some with heavier damage to facilities are still unable to resume production.

"A number of our suppliers and U-boat-suppliers are based in the area that was hardest hit," aforesaid Nordberg.

Sony Ericsson suffered smallish impact during the quarter because it had already secured most of the components it needed before the quake. However, supply chain disruption will be felt this quarter.

"For Q2 we see an impact on volume connected the Xperia Electric discharge, Xperia Play and Xperia Neo," Nordberg aforementioned, appellative Sony Ericsson's three new flagship phones. "The reason being that these products contain high-end components such arsenic cameras, LCDs and batteries."

The company recently launched the Xperia Arc and Xperia Meet handsets in several markets. Qualified quanties of the Xperia Neo also became usable in China, but the broad launch of the smartphone has been shifted to the third quarter, said CFO William Glaser.

Sony Ericsson has informed cellphone carriers that IT power non be able to meet orders.

Availability of components has begun to stabilize and Sony Ericsson has also reversed to alternative suppliers for approximately products. The disturbance could continue for some time.

"We foreknow that roughly of the supply chain wish continue to beryllium impacted by this disaster attributable the damage to infrastructure and might constraints in Japan," said Nordberg. "The situation is dynamic, and at this stage it's too early to predict the medium terminal figure burden on our business."

(Mikael Ricknäs in Stockholm contributed to this story)

Martyn Williams covers Japan and general-purpose technology breaking news for The IDG Intelligence Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com