Sony Ericsson reports positive numbers from third quarter
14 October 2011 by Olav Hellesø-Knutsen Sony Ericsson is again reporting positive numbers with a income of 31 million euro before taxes. The entire portfolio will be smartphones during 2012.
The 50-50% joint venture of Sony and Ericsson are again reporting positive earnings. The third quarter 2011 financial report published today reveals that Sony Ericsson again is making money. The company is not back on track like it was in the good old days back in 2007, but the latest quarter are the second best since 2008. Some of the red numbers from the second quarter was caused by the Japan earthquake and supply chain constraints caused by the natural disaster. Income before taxes is 31 million Euro and the all time high average selling price per handset is 166 Euro. Sony Ericsson has recently spent a lot on restructuring but these expenses are now history. Sony Ericsson CEO Bert Nordberg said that 80% of sales comes from Xperia phones running Android. During the second quarter, this number was 70%. Maybe it is a little late, but the entire smartphone portfolio will be smartphones during next year. It is a smaller market for smartphones compared to feature phones, so the 9.5 million units shipped during the quarter is a decrease of 9% since Q3 last year. Sales in Euro was 1,586 million which is the best quarter this year but only under half of what it was during the last quarter of 2007. Net income is 0 and the reason for this is that a 51 million Euro debt to external sources was paid back during the quarter. Sony Ericsson estimates that they have a market share of 12% in volume and 11% in value which means that they are selling their mobile phones a little cheaper than most competitors. Alternatively post this in the Esato forum Please sign in to your Esato account to leave a comment regarding this article  gola12 years, 6 months agoWell done to   [ This Message was edited by: gola on 2011-10-15 14:29 ] Hold your horses. The important bit is this:
On 2011-10-15 01:42:22, laffen wrote: Net income is 0 and the reason for this is that a 51 million Euro debt to external sources was paid back during the quarter A company which makes no profit tends not to stay as a company if they keep getting results like this. Companies are in business to make profit, of which SE are failing sadly. On 2011-10-15 23:47:40, etaab wrote: Hold your horses. The important bit is this: On 2011-10-15 01:42:22, laffen wrote: Net income is 0 and the reason for this is that a 51 million Euro debt to external sources was paid back during the quarter A company which makes no profit tends not to stay as a company if they keep getting results like this. Companies are in business to make profit, of which SE are failing sadly. Under most circumstances you'd be right. However, this is a company that is coming from a loss in the last quarter, their first loss for the year I might add, so this in any person's language is an improvement and a step in the right direction. The biggest concern for them right now is the sales they need to make for this quarter and the first quarter of next year. Sadly i dont see things getting better for SE. I just dont think their brand identity is as strong as HTC's, Samsung's or Apple's. I fear it might be too late for them to recover which is a sad thing.
I do think SE need to drop half of the rubbish they keep punting to customers in their smartphones. Their displays are good, but look quite poor in comparison to Samsung's. The limited amount of time ive spent with the Arc and my mates Xperia Play i was disappointed with the Bravia engine nonesense. It looks just like a basic LCD screen to me. I also find SE's interface they use over Android is quite boring compared to Touchwhiz and HTC Sense. I have said, way before this report, that SE needs to make decent profits in three quarters starting with with this one to have a realistic chance of survival.
Well, the first of the three reports is so so. I am eagerly waiting to see how they do in the next two. I agree that it doesn't look good for them. On screens, I prefer the more natural looking type of screen and so Super Amoled isn't something I like. I guess here it boils down to personal preference. In terms of UI, I disagree, Touchwiz is pathetic to me. Sense, on the other hand, is truly brilliant! SE's UI is wonderful too, it is not far off that of HTC's. I would rate them as a close second to HTC in user interface. SE are clearly not delivering to the market what the customers want, especially in comparison to their competitors. They are certainly on the right path with faster to market upgrades, unlocking bootloaders and cooperating with ROM custom developers such as the folks responsible for Cyanogenmod. They still need to do more though. They need to release a dual core device asap - whether or not dual cores are necessary is another market but customers want dual cores, case in point 10 million + SG SII devices sold.
Their results for the next quarters will be interesting and crucial. I just think when it comes to displays, a super amoled from Samsung would look much better to the joe average consumer than any SE display, which in turn makes it looks more pretty and attractive to the consumer. Even if people prefer more natural colours than jazzy vibrant neon colours of the super amoled.
I have no problems with SE displays and i too am not a massive fan of over saturated Super Amoled. But very sadly yes i think if next year is not the bumper year for SE that people keep saying will be i fear it will end SE if not sooner if this take over happens with Sony. They cannot continue another year with zero profit. So sad i think. I prefer SE UI to Touch Wiz and I also love HTC Sense too. Thats one thing about Samsung its Touch Wiz is dull to me
_________________ We don't need money to have a good time!!!!  Xperia Ray
EsatoWorld Papertour *Renewed! [ This Message was edited by: Bonovox on 2011-10-19 23:25 ] Sony is a much more boring company without Ericsson, they're a bit like Nokia in that respect.
Hmm much as i loved Ericsson phones i think Sony could make something good. I also think with good advertising and specs people will notice a Sony phone more than Sony Ericsson.
On 2011-10-15 23:47:40, etaab wrote: Hold your horses. The important bit is this: On 2011-10-15 01:42:22, laffen wrote: Net income is 0 and the reason for this is that a 51 million Euro debt to external sources was paid back during the quarter A company which makes no profit tends not to stay as a company if they keep getting results like this. Not necessarily. Receiving normal profits (i.e. 0) is not uncommon in very competitive markets. This means that their revenue is exactly equal to the money they've spent on R&D, wages, inputs, etc. The only thing this means is that the company can't really grow that much. The fact that they decided to repay their debts is a good one, IMO. They can afford it atm and it's good to get them out of the way. On 2011-10-20 00:30:00, Bonovox wrote: Hmm much as i loved Ericsson phones i think Sony could make something good. I also think with good advertising and specs people will notice a Sony phone more than Sony Ericsson. I beg to differ. My memory of Sony mobile phones of days gone by is that they were not that spectacular. Admittedly that was a while back and Sony might have learnt a thing or two about product design if their Viao laptop series is anything to go by. "Sony Ericsson" as a brand is stronger, and people will notice a Sony Ericsson phone first before a Sony phone - which some people might look at with bewilderment wondering what Sony is doing? On 2011-10-20 08:53:24, Geezay wrote: On 2011-10-20 00:30:00, Bonovox wrote: Hmm much as i loved Ericsson phones i think Sony could make something good. I also think with good advertising and specs people will notice a Sony phone more than Sony Ericsson. I beg to differ. My memory of Sony mobile phones of days gone by is that they were not that spectacular. Admittedly that was a while back and Sony might have learnt a thing or two about product design if their Viao laptop series is anything to go by. "Sony Ericsson" as a brand is stronger, and people will notice a Sony Ericsson phone first before a Sony phone - which some people might look at with bewilderment wondering what Sony is doing? I would politely disagree
SONY is a much much bigger brand than as far as brand recognition and perception go. It has consistently ranked among top 5 most popular/preferred global brands. This year in a global survey conducted across all major continents SONY came in second after Google in terms of brand value/preference.
On 2011-10-20 11:23:15, randomuser wrote: On 2011-10-20 08:53:24, Geezay wrote: On 2011-10-20 00:30:00, Bonovox wrote: Hmm much as i loved Ericsson phones i think Sony could make something good. I also think with good advertising and specs people will notice a Sony phone more than Sony Ericsson. I beg to differ. My memory of Sony mobile phones of days gone by is that they were not that spectacular. Admittedly that was a while back and Sony might have learnt a thing or two about product design if their Viao laptop series is anything to go by. "Sony Ericsson" as a brand is stronger, and people will notice a Sony Ericsson phone first before a Sony phone - which some people might look at with bewilderment wondering what Sony is doing? I would politely disagree
SONY is a much much bigger brand than as far as brand recognition and perception go. It has consistently ranked among top 5 most popular/preferred global brands. This year in a global survey conducted across all major continents SONY came in second after Google in terms of brand value/preference.
Wow! You are a Sony fan through and through, every thread you post at you exalt Sony so much that they'd be proud to know there still people who love them so much. Nothing wrong with your admiration but we need to strike a good balance between the positives and the negatives. Geezay makes a good point, you need to read and understand the context. He didn't say Sony was weak or bad but wrote about Sony cell phones. Yes and all i was saying although i love Ericsson. People would recognise Sony on the high street more than Ericsson. Have you noticed how many people refer to their phones as Sony phones and not Sony Ericsson?? Yes it irritates me too but Sony is just more well known. But i do think now they could make some decent phones on their own but despite their brand popularity its still debatable weather they can make it work and bring in the sales again. They need top phones and good promotion.
_________________ We don't need money to have a good time!!!! Xperia Ray
EsatoWorld Papertour *Renewed! [ This Message was edited by: Bonovox on 2011-10-20 11:17 ] On 2011-10-20 00:57:14, NightBlade wrote: Not necessarily. Receiving normal profits (i.e. 0) is not uncommon in very competitive markets. I understand how a business works as i run one. However, from SE's point of view their results are not just a single quarter, a single year, but a string of bad periods with little growth overal compared to their competitors. They wont go out of business overnight by making a loss at the end of the business year, but many companies rely on funding from their shareholders and investors. The point of the business is to make money for the people who fund them. If they consecutively lose money year on year, or make such a small profit that they're unable to grow the people who stump up the cash in the first place lose confidence in the management of the company, grow impatient and buy themselves out. Which in turn forces the company to shrink. Its all about growth, whereas if Sony quit the game and go it alone without Ericsson, thats simply not growth. @Dups
I did read his post completely and understood the fact that he was talking about cellphones. And my reply was regarding to cellphones not general brand value. A SONY smartphone will receive much greater attenntion than a smartphone. Especially in the US market where has virtually no brand presence.On 2011-10-21 05:10:44, randomuser wrote: @Dups I did read his post completely and understood the fact that he was talking about cellphones. And my reply was regarding to cellphones not general brand value. A SONY smartphone will receive much greater attenntion than a smartphone. Especially in the US market where has virtually no brand presence.
Okay. The Sony name does have some wieght in the US no doubt but with all this competition in the form of Apple, Samsung and a Google-owned Motorola, how much inroads are they really going to make in that part of the world? I will give them the chance and see how they do as Sony Mobile but I still not too optimistic. Let's wait and see, shall we? I wonder now if it's Sony or Ericsson behind the latest designs of phones like the Ray now?? Cos seeing the new Sony mp3 player the NWZ A866 it looks alot like the Xperia Ray with the home button
[ This Message was edited by: Bonovox on 2011-10-22 12:23 ] |
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