The increasing number of people that recycle their mobile phone and overlook Nokia handsets when purchasing their replacement is having an adverse affect on the sales of ST-Ericsson.
ST-Ericsson designs mobile semiconductors and counts Nokia as one of its key clients and so the deepening losses that Nokia has recorded in the last few months have had a knock-on effect for the firm.
STMicro chief executive Carlo Bozotti said in a statement that while the portfolio is beginning to improve the current results of ST-Ericsson are still distant from the financial prospects being envisaged.
Chief executive of ST-Ericsson Didier Lamouche added: "Sales and operating results will continue to be challenging over the coming quarters, due to the reduction in the short term of new product sales with one of our largest customers."
Bloomberg recently reported that sales of the new Nokia Lumia 900 could help restore investor confidence in the troubled company.
Posted by Samantha Green
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