Sony Ericsson has reported losses of €42m for the quarter ended 30 June, as handset volumes fell and the Japanese earthquake hit.
The manufacturer shipped 7.6 million handsets during the period, a 31% decrease year on year and a 6% decrease sequentially. The company said this was due to a decrease in volume caused by ‘constrained supply of critical components’, as well as an anticipated decline in the number of feature phones shipped.
Average selling price (ASP) for the quarter was €156, a 3% decrease year on year but an 11% increase sequentially. The manufacturer blamed the year on year decrease on product and geographic mix and price erosion. Meanwhile, the sequential increase in ASP is attributed to ‘favorable product and geographic mix, more than offsetting price erosion and unfavorable foreign exchange rates’.
Sales for the quarter were 1.2bn – a 32% decrease year on year and a 4% increase sequentially.
Sony Ericsson estimates that its share in the global Android-based smartphone market during the quarter was approximately 11% in volume and 11% in value.
The manufacturer maintains its forecast for modest industry growth in total units in the global handset market for 2011.
Sony Ericsson CEO Bert Nordberg said: ‘Sony Ericsson’s second quarter profitability was affected by the March 11 earthquake in Japan. We estimate that the impact of earthquake-related supply chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter. Our shift to Android-based smartphones continues with smartphone sales accounting for more than 70% of our total sales during the quarter.
‘We have shipped more than 16 million Xperia smartphones to date. We have introduced eight new Xperia smartphones this year and we continue to see strong consumer and operator demand across the Xperia smartphone portfolio.’