Sony Ericsson clocks $316.57 million net loss in 2011

By Telecom Lead Team : Sony
Ericsson Mobile Communications (Sony Ericsson) has reported sales income of
5.21 billion euros in 2011 against 6.29 billion euros in 2010.


Sony Ericsson’s Q3 2011 result

Sales in
Q4 2011 were approximately Euro 1.3 billion, down 16 percent year-on-year. The
year-on-year decline reflects the decrease of feature phone sales which was
only partially offset by an increase in smartphone sales. Fourth quarter
sales were negatively impacted by macroeconomic challenges in advanced
economies contributing to weaker holiday sales, and certain component shortages
from the flooding in Thailand in late October and early November 2011.


During the
full year, Sony Ericsson shipped 34.4 million phones as against 43.1 million in
2010. Xperia smartphones accounted for approximately 80 percent of total sales
in the fourth quarter.


Ericsson has reported a net loss of 247 million euros ($316.57 million) in 2011.
Net loss for the fourth quarter ended December 31, 2011 was 207 million euros.


It shipped
9 million phones in Q4 2011 against 11.2 million phones in Q2 2010, showing a
20 percent decrease year-on-year. The year-on-year and sequential declines
reflect a significantly lower number of feature phones shipped, partially
offset by an increase in smartphone shipments. Sony Ericsson has shipped 28
million Xperia smartphones to date.


Its fourth
quarter results reflected intense competition, unfavorable macroeconomic
conditions and the effects of a natural disaster in Thailand this quarter. Sony
Ericsson is aligning its business to drive profitability and to meet customer


In spite
of these challenges, throughout 2011 we’ve shifted our business from feature
phones to smartphones, and our Android-based smartphone sales in the quarter
increased by 65 percent year-on-year. The Xperia portfolio, including the
recently announced Xperia NXT series, will serve as a cornerstone of our
smartphone lineup in 2012,” Bert Nordberg, president and CEO of Sony Ericsson


selling price (ASP) for the quarter was Euro 143, up 5 percent year-on-year but
down 14 percent sequentially. The year-on-year increase is due to the shift to
smartphones and geographic mix. The sequential decrease in ASP is attributed to
geographic and product mix, including declining prices of products launched
earlier in the year, and the absence of new products introduced in the fourth


Ericsson estimates that its share of the global Android-based smartphone market
was 10 percent in volume and 7 percent in value during the quarter and 10
percent in volume and 10 percent in value for the full year.   


Ericsson estimates that the global smartphone market for the full year 2011
increased by 60 percent in volume to 463 million units. Sony Ericsson estimates
strong growth in the smartphone market in 2012.


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