Sony Ericsson Reports Q2 2011 Losses, Blames Japanese Earthquake
With so many new and strong Android phones coming out of Sony Ericsson’s factory, everybody expected to see increased income and sales numbers from the company. Things just didn’t turn out that well as the Swedish-Japanese joint venture posted significant losses in the second quarter of the year.
There were 7.6 million units shipped during the second quarter of the year representing a 31% decrease year-on-year. Even so, sales represent more than 70% of the total sales during the period but Bert Nordberg, President and CEO of Sony Ericsson said: “Sony Ericsson’s second quarter profitability was affected by the March 11 earthquake in Japan. We estimate that the impact of earthquake-related supply chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter”.
At the end of June, Sony Ericsson recorded a net loss of 50 million euros (around $70.7 million), with a net income of 12 million euros (around $17 million). If you want to see the exact numbers, follow the source link to check out the full report.
Source: Sony Ericsson