Cellphone disconnection The cellphone industry is one of those industries that have blasted off in the past few years. Their shares have skyrocketed as more and more people want to connect with others and not be left behind. The number one cell phone manufacturer right now is Nokia as they control a huge part of the industry. Things are no longer sky rocketing however, and things could be falling down to earth faster than any piece of space junk in history.

Nokia’s profits fell 90% in the first quarter of this year and there is no surer sign of the sky is falling than that. Add to this story is the number four cellphone manufacturer Sony Ericsson is now cutting down 2,000 jobs to save 400 M Euros. "The management intends to pursue an additional cost saving programme targeting a further annual operating expense reduction of 400m euros, to be completed by mid-2010," said Dick Komiyama, President of Sony Ericsson.

Ericsson has cut down its deliveries by some 35% percent which directly translates to a similar loss of profit as compared to a year ago. Nokia and Ericsson are now struggling to find ways to save money. Ericsson’s new cut of 2,000 employees comes on top of an initial 2,000 job cuts. While the same is expected as any other industry in the world is doing some cutbacks, Ericsson’s is very significant because of its stature in the cellphone industry. As the number four in the business, they represent a significant portion and a steep loss means that things are really as bad as people think they are. Nokia has been a world leader for a long time and for them to report a decrease by 90% is mind boggling at the very least.