Sony Ericsson posted much improved figures for the third quarter of 2011 after producing a pre-tax profit of €31m, up from a loss of €42m in Q2 2011. However, the figure was well down on Q3 2010 when the manufacturer made a pre-tax profit of €62m.
The company said that 80% of its sales came from its Xperia smartphone portfolio with 22 million units shipped to date. Sony Ericsson president and CEO Bert Nordberg commented: ‘We will continue to invest in the smartphone market, shifting the entire portfolio to smartphones during 2012.’
Sony Ericsson estimates its share of the global Android-based smartphone market during Q3 2011 was approximately 12% in volume and 11% in value. The company shipped 9.5 million handsets in the quarter, a 9% decrease year on year due to a decline in feature phone shipments, partially offset by an increase in smartphone shipments. The 25% quarter on quarter increase was due to the higher volume of smartphones shipped.
The average selling price (ASP) for the quarter was €166, up 8% year on year and 6% sequentially. Sony Ericsson attributed the year on year increase to the shift to smartphones and geographic mix despite a negative effect from foreign exchange rates. The sequential increase was due to product and geographic mix.
Revenue for the quarter was €1.58bn, up on Q2 2011 (€1.1bn), but slightly down on Q3 2010 when it earned €1.60bn. The gross margin percentage for the quarter was 27%, a decrease of three percentage points year on year and four percentage points from the previous quarter.