Sony Ericsson Q4 2011 Results Show Net Loss of $266M
It’s a tough time for Sony Ericsson — which became Sony Mobile Communications for 2012 — as the 2011 Q4 financial results indicate net losses of 207 million EUR (around $266 million). The phone maker shipped a total number of 28 million Xperia smartphones to date, 9 million — a 20% decrease year-on-year and a 5% decrease compared to last quarter — in the last quarter of 2011.
As far as sales are concerned, the company sold 1.3 billion EUR (roughly $1.67 billion) worth of devices, down 16% year-on-year and 19% quarter over quarter. The reasons are various: “our fourth quarter results reflected intense competition, unfavorable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter”, said Bert Nordberg, President and CEO of Sony Ericsson.
On a positive note, “Android-based smartphone sales in the quarter increased by 65% year-on-year”, with an estimated global share of the Android smartphone market of 10% in volume and 7% in value for Q4 2011.
However, Sony Ericsson estimates strong growth in the smartphone market in 2012. Sony bought out Ericsson’s stake in the joint venture; “the transaction is expected to close in late January to February, subject to customary closing conditions, including regulatory approvals”.
Source: Sony Ericsson