Sony Ericsson US head bails as company faces tough times

With Sony Ericsson still reeling from the aftermath of its negative quarterly forecast, the USA head has now chosen to leave the struggling company.

The fourth largest mobile phone maker in the world expects a net income loss of EUR 340 – 390 million for the first quarter of 2009 as a direct result of weak customer demand and de-stocking in retail and distribution channels.

Sony Ericsson expects to sell only 14 million phones in the quarter spanning January to March, a 40% decrease in units compared to the previous quarter.

The announcement sent shares across the wireless sector into a downward spiral reports Reuters.

Now president of Sony Ericsson USA and head of North America (comprising both US and Canada markets) Najmi Jarwala has stated that he will leave the company at the end of March to ‘pursue other career opportunities’.

Effective April 1st, Anders Runevad, executive VP of Sony Ericsson and head of Global Sales & Marketing, will take on Jarwala’s dual responsibilities until a replacement is found.

The cellphone industry has been reeling from the effects of the economic downturn with fewer consumers willing to spend on new phone models.

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