Shift to Android driving profitability for Sony Ericsson

Written by: Paul Withers
Shift to Android driving profitability for Sony Ericsson

Smartphones accounted for over 60 per cent of company’s total handset sales in Q1 but supply chain disruption due to Japan earthquake leads to disappointing results

Sony Ericsson has said its shift to Android-based handsets is driving profitability after revealing smartphones made up over 60 per cent of its total sales during the first three months of this year.

Sales for Q1 were €1.145 million which represented a 19 per cent decrease year-on-year and 25 per cent decrease sequentially.

Sony Ericsson shipped 8.1 million units in the quarter, a 23 per cent decrease compared to Q1 2010 and a 28 per cent decrease from the previous quarter with the average selling price rising five per cent year-on-year and four per cent sequentially to €141.

Gross margin for the quarter was 33 per cent, up two per cent year on year and three per cent sequentially. Income before taxes for the quarter was a profit of €15 million, a decrease of €3 million year on year and €20 million sequentially, with the impact of lower sales offset by higher gross margin percentage and lower operating expenses, Sony Ericsson said.

Net income for the quarter fell €10 million compared to the same period a year ago to €11 million, with an increase of €3 million sequentially.

Sony Ericsson president and chief executive Bert Nordberg said: “Sony Ericsson’s profitability continues as we accelerate our shift towards an Android-based smartphone portfolio, with smartphones comprising over 60 per cent of our total sales during the quarter.

“However, the Japan earthquake made it a challenging quarter operationally and we are experiencing some disruptions to our supply chain. We will continue to evaluate the situation.”

Leave a Reply

To advertise on this site, call 0203 122 0872

Recent Comments

Regards from New York. Wishing all the best to Ms. Jeffrey. Much success in this exciting new field's enterprise. May it succeed beyond your dreams....
so far so good shebang...
When 3AU and Voda AU merged customer care got sent to the same call centres as as 3UK & 3 Ireland, 3/Huthison Global Servives owned by Hutchison. Voda are slowly but surely sending all custom...
I think you will find that Ovivo raised considerably more than £150k on Crowdcube - didnt they come back and have a second go? At any rate Crowdcube should be held liable for some of this damage...
There is a lesson in this somewhere - !...
See the lack of tacky armour - that's why I make the big bucks short stuff...
MSE should refund £20 plus consequential losses to customers who followed its recommendation, which incidentally MSE expected to be paid for. 20,000 new customers in the last month - where did t...
I'm not sure I'd unreservedly accept everything Ovivo alleges there. There were obviously good enough back office systems to identify customers for billing purposes, as it was possible to log in ...
Some customers have received an email from an insolvency practitioner...
This setback hasn't deterred Mr Zand from his interest in mobile networks new company: ZYO Mobile...

Social Media Feed