Sony Ericsson profits down in 3rd quarter

Oct 14, 2011 By KARL RITTER , Associated Press

Mobile phone maker Sony Ericsson posted a break-even third quarter Friday - blaming the drop in earnings on higher taxes and lower margins - and announced that it is shifting its entire portfolio to smartphones next year.

The joint venture between Sweden's and Japan's Sony Corp. said net profit fell to 0 from euro49 million ($67.26 million) in the same quarter last year, while sales dipped slightly to euro1.59 billion ($2.18 billion), from euro1.6 billion ($2.2 billion) a year earlier.

The company said its pretax profit was cut in half due to a lower gross margin, partially offset by lower operating expenses. Taxes grew to euro17 million from euro12 million.

Sony Ericsson said its Android-based Xperia smartphones now account for more than 80 percent of its sales. That was reflected in a 9 percent decrease in units shipped but an 8 percent hike in the average selling price of a Sony Ericsson phone.

"We will continue to invest in the smartphone market, shifting the entire portfolio to smartphones during 2012," CEO Bert Nordberg said.

Smartphones account for an increasing share of the total , as users move away from more basic handsets.

Even before the introduction of smartphones, Sony Ericsson focused on more advanced mobile phones than many of its bigger competitors, such as .

adopted Google's Android operating system for its smartphones in 2008, and said it now controls about 11 percent of the Android-based smartphone market.

It maintained its forecast of modest industry growth in the global mobile phone market in 2011.

Explore further: Out-of-patience investors sell off Amazon

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Sony Ericsson targeting China's smartphone market

Sep 01, 2010

Sony Ericsson said Wednesday China would become its biggest handset market by volume in the next three to four years, as it moved to grab a bigger slice of the fast-growing smartphone market.

Mobile phone maker Sony Ericsson posts Q1 profit

Apr 16, 2010

(AP) -- Mobile phone maker Sony Ericsson posted its first quarterly profit in nearly two years Friday, boosted by gains from high-end devices such as smartphones and cost cuts.

Sony Ericsson Q4 loss narrows 9 percent

Jan 22, 2010

(AP) -- Mobile phone maker Sony Ericsson on Friday said its loss in the fourth quarter narrowed 9 percent from a year ago to euro167 million ($235 million), as improved margins and lower costs offset a slump in sales.

Mobile sales up 32 percent last year: Gartner

Feb 09, 2011

Worldwide mobile sales increased 32 percent last year and smartphone shipments surpassed those of personal computers for the first time in the fourth quarter, according to tracking firms.

Recommended for you

Out-of-patience investors sell off Amazon

23 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0