Sony Ericsson falls back into red in Q4

Michael Carroll
20 Jan 2012

Sony Ericsson blames tough competition and the effects of flooding in Thailand for slipping back into the red during 4Q11.

The handset joint venture generated a loss of €207 million ($268.5 million) during the quarter compared to break even results in 3Q11, as intensifying competition took its toll on the firm’s average selling price, which fell from €166 in the third quarter to €143 in the final three months of the year. That decline drove revenue down from €1.5 million in 4Q10 to €1.2 million in the recent quarter.

Full year results don’t make for pleasant reading either, with the firm slipping from a profit of €90 million in 2010 to a €247 million loss in 2011.

Despite the grim figures, president and chief Bert Nordberg noted that shipments of the firm’s Android smartphones grew 65% year-on-year. Nordberg revealed in October that the vendor plans to ditch low-end devices to focus solely on smartphones in 2012 – a move that will round out Sony’s multiscreen strategy once it completes a €1.05 billion buyout of Ericsson’s 50% stake in the joint venture.

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