The company said it expected to report a pre-tax profit of €150 million to €200 million (US$235 million to $310 million ) for the first quarter "due to increased research and development expenses as a percentage of sales." This compared with previous analyst estimates of €305 million to €409 million.
"We believe there are 3 reasons behind today’s warning and that the issues are likely to continue at least into Q2 and possibly beyond," says UBS Research analyst Maynard Um in a report. These are:
- Softer high-end demand in Europe (Sony-Ericsson most hurt by Apple iPhone)
- Delays in new product launches (which led to higher R&D)
- LCD screen shortages
— Dan Jones, Site Editor, Unstrung