Posted by Tsepz_GP
Just a day after Google reported about there being 190 million Android phones manufacture, Sony Ericsson has announced its quarterly financials and 22 million, or around 11.5% of those, were handsets mady be the Swedish-Japanese JV.
Now, 80% of the company’s sales come from smartphones, while the remaining 20% are from feature phones. With this in mind, Sony Ericsson reaffirmed its commitment to make smartphones only in 2012:
"We will continue to invest in the smartphone market, shifting the entire portfolio to smartphones during 2012," SE's CEO Bert Nordberg confirmed.
Sales in the quarter amounted to 9.5 million units, a recovery from the 7.6 million sold in the summer quarter, but still down 9% when compared to Q3 of last year.
Results for the third quarter also slightly beat analysts' expectations as the company swang back into operating profit, after a disappointing second quarter. Looking at net results, the SE broke even. The average price of a Sony Ericsson handset surged $10 to $166.
The company didn’t comment on the latest rumor claiming that Sony is about to buy Ericsson’s 50% stake in the phone maker. Analysts have pointed out that the move would be welcome for SE’s smartphones as they’d be able to fully integrate Sony’s services. Ericsson’s stake is estimated at around $1.5 billion.
Now, 80% of the company’s sales come from smartphones, while the remaining 20% are from feature phones. With this in mind, Sony Ericsson reaffirmed its commitment to make smartphones only in 2012:
"We will continue to invest in the smartphone market, shifting the entire portfolio to smartphones during 2012," SE's CEO Bert Nordberg confirmed.
Sales in the quarter amounted to 9.5 million units, a recovery from the 7.6 million sold in the summer quarter, but still down 9% when compared to Q3 of last year.
Results for the third quarter also slightly beat analysts' expectations as the company swang back into operating profit, after a disappointing second quarter. Looking at net results, the SE broke even. The average price of a Sony Ericsson handset surged $10 to $166.
The company didn’t comment on the latest rumor claiming that Sony is about to buy Ericsson’s 50% stake in the phone maker. Analysts have pointed out that the move would be welcome for SE’s smartphones as they’d be able to fully integrate Sony’s services. Ericsson’s stake is estimated at around $1.5 billion.
http://phonearena.com/news/So[....]artphones-only-in-2012_id22993
http://sonyericsson.com/cws/c[....]ncialpressrelease2011-20111014
[ This Message was edited by: Tsepz_GP on 2011-10-14 12:48 ]
Posted by Aivar
I still hope that SE will make some good classic phones also with keyboard and non-toch screens.
I really dont like smartphones and I dont need them!
So far my everyday phone is K610i.
Posted by Bonovox
They already said they are moving away from feature phones next year.
Posted by Aivar
As I read they are focusing on smartphones, not stoping classical phones. But maybe "focusing" means that they abondon classical phones at all...
Posted by Dups!
'' We will continue to invest in the smartphone market, shifting the entire portfolio to smartphones during 2012,'' SE's CEO Bert Nordberg confirmed.
That says it all, Aivar. The feature phones have reached the end of the line at SE.
Posted by goldenface
Not a bad set of results which should set them up for 2012. Q4 will be a bumper season for them now that more phones are available like the Active, Mini and Neo.
Posted by Bonovox
Well,O2 today put the price of the Play down to £149
according to Rookwise[ This Message was edited by: Bonovox on 2011-10-14 15:03 ]
Posted by masseur
didn't he say "Play" rather than "Ray"?
Posted by Bonovox
Yes my mistake
So that's even cheaper for the Play then. It's also on O2 website. I would also like to say that 
despite the Japan quake has still delivered pretty well.[ This Message was edited by: Bonovox on 2011-10-14 15:05 ]
Posted by masseur
If it was £150 I'd definitely have a "play" with a "ray"!
I wonder how these results will affect any split?
Posted by max_wedge
Interesting news. I guess SE are looking at consolidating their resources into something that makes a reasonable margin.
Posted by Bonovox
On 2011-10-14 16:08:05, masseur wrote:
If it was £150 I'd definitely have a "play" with a "ray"!
I wonder how these results will affect any split?
Well,I love my Ray but so far all the websites i have seen the Play come down under £200 have sold out fast.
Posted by Dups!
The next two quarters are going to be tricky for them. They are basically going to rely on volume rather than pricing. Their recent phones are cheaper and their high-ends have fallen in price and so the profit margins are going to be eroded.
Posted by mustafabay
In a way if they can maintain profitability I'd go with the more volume route. Their market share is a little too low.