Sony Ericsson Q4 2011 Results Show Net Loss of $266M

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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

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Anton D. Nagy

Anton is the Editor-in-Chief of Pocketnow. As publication leader, he aims to bring Pocketnow even closer to you. His vision is mainly focused on, and oriented towards, the audience. Anton’s ambition, adopted by the entire team, is to transform Pocketnow into a reference media outlet.