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Sony Ericsson plans Android dominance

Mobile News
October 15, 2010

Sony Ericsson plans market dominance through Android after recording third consecutive quarter of profitability despite sales and units shipped declining

Sony Ericsson president and chief executive officer Bert Nordberg said it plans to become the global number one handset provider on the Android platform after profitable results during the third quarter showed its performance is stabilising.

Net income totalled ‚¬49 (£43) million during the third quarter of 2010, an increase on a loss of ‚¬164 (£144) million in the year-ago period and ‚¬12 (£10.5) million in the previous quarter.

Sales fell from ‚¬1,617 (£1,420) million in Q3 2009 and ‚¬1,757 (£1,543) million in Q2 2010 to ‚¬1,603 (£1,408) million. Units shipped fell from 14.1 million and 11 million, year-on-year and quarter-on-quarter respectively, to 10.4 million in Q3 2010.

However, the average selling price was ‚¬154 (£135) during the last quarter, up 34 per cent year-on-year but down four per cent sequentially, while the gross margin was 30 per cent, almost double that recorded in Q3 2009 and up slightly on Q2 2010. Operating margin increased from -12 per cent in Q3 2009 and two per cent in Q2 2010 to four per cent in Q3 2010.

Sony Ericsson said its market share in terms of units remained flat sequentially and is estimated to be approximately four per cent. The value market share is estimated to be six per cent.

Sony Ericsson maintains a forecast of slight growth in units in the global handset market in 2010.

Nordberg (pictured) said: “Our third consecutive quarter of profitable results illustrates that Sony Ericsson’s overall performance is stabilising.

“Our strategy to focus on the smartphone segment is succeeding and smartphones now comprise more than 50 per cent of our total sales.

“It is our ambition to become the global number one handset provider on the Android platform.”

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