Sony Ericsson posts flat revenue growth in Q3; to shift to smartphone portfolio

Sony Ericsson, which is expecting a split between its
partners, has recorded 1.06 percent growth in revenue in Q3 2011 at Euro
1.6 billion.

Units shipped during the quarter were 9.5 million, a 9
percent decrease year-on-year due to a decline in feature phone shipments,
partially offset by an increase in smartphone shipments.

Its net income during the period was 0. Net income
during the quarter decreased by Euro 49 million year-on-year.

We delivered a solid 73 million Euro improvement in income
before taxes as we rebounded from the previous quarter with a 33 percent
increase in sales,” said Bert Nordberg, president and CEO of
Sony Ericsson.

Android-based Xperia smartphone sales now account for more
than 80 percent of sales and the company hase shipped 22 million
Xperia smartphones to date. Sony Ericsson will invest in the
smartphone market, shifting the entire portfolio to smartphones during 2012.

Average selling price (ASP) for the quarter was Euro 166, up
8 percent year-on-year and 6 percent sequentially. The year-on-year increase
was due to the shift to smartphones and geographic mix despite a negative
effect from foreign exchange rates.

Cash flow from operating activities during the quarter was
Euro 53 million. External borrowings of Euro 51 million were repaid during the
quarter, resulting in total borrowings of Euro 718 million at the end of the
quarter. Total cash balances at September 30, 2011 amounted to Euro 466

Sony Ericsson estimates that its share of the global
Android-based smartphone market during the quarter was approximately 12 percent
in volume and 11 percent in value.

Sony Ericsson maintains its forecast for modest industry
growth in total units in the global handset market for 2011.

By Team
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