August 1, 2014

Sony Ericsson announces rocky Q4, ready to start over with new branding

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Sony Ericsson, citing  “intense competition, price erosion and restructuring charges”, has posted some less than desirable figures from the final quarter of 2011.  Announcing a €247 million loss, the joint venture shipped 9 million handsets in the quarter, a 20% decrease year-on-year and a 5% decrease compared to last quarter.  Revenue was down to €1.29 billion whereas it was €1.53 billion in Q4 2010.  We don’t have to tell you this but that’s the wrong direction.

It’s not all doom and gloom though as Sony Ericsson indicates that demand for the Android smartphones were up by 65% year-on-year.  What’s more, the average selling price was up 5% year-on-year, a reflection of the strategy to switch to smartphones over feature phones.

Sony Ericsson certainly has their work cut out for them, especially if they still want to become the number one Android player in the world.  With at least a dozen new devices on the horizon for 2012 and a refreshed branding we can’t help but think they are heading the right direction.  They key will be how well they are received in the United States and whether or not consumers are willing to look beyond their Samsung or Motorola phones.

Sony Ericsson