Sony Ericsson breaks even amidst Sony takeover rumors

The company didn't manage to turn a profit despite selling more smartphones

Sony Ericsson Mobile Communications barely broke even during the third quarter, and reported a small year-on-year drop in revenue as an increase in the average selling price of its phones was offset by a 9 percent fall in volume.

Revenue for the third quarter was about €1.59 billion (US$2.19 billion), compared to €1.6 billion a year earlier. Profitability declined too, with the company breaking even this year after making a €49 million profit in the third quarter last year.

Sony Ericsson shipped 9.5 million phones during the third quarter, a 9 percent decrease compared to the same period last year due to a decline in feature phone shipments. The drop was in part offset by an increase in smartphone shipments, the company said.

That change in product mix towards higher-end models drove the average selling price of Sony-Ericsson phones in the quarter up to €166, from €154 a year earlier.

Sony Ericsson plans to drop feature phones from its portfolio entirely during 2012: Currently, 80 percent of its revenue is from smartphones. The company has shipped 22 million Xperia smartphones to date. It estimates that its share of the Android-based smartphone market was approximately 12 percent in volume and 11 percent in value during the third quarter.

During a conference call to discuss the results, the company declined to comment on rumors that parent company Sony may buy out its partner in the joint venture, Ericsson.

Send news tips and comments to mikael_ricknas@idg.com

Tags business issuesSony Ericsson Mobile Communicationsconsumer electronicstelecommunicationAndroidMobile OSessmartphonesfinancial resultsmobileMergers and acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?