Sony Ericsson back in the black with €31m pre-tax profit in Q3

Sony Ericsson back in the black with €31m pre-tax profit in Q3

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. 

Written by Mobile Today
Mobile Today


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