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Published on Friday, October 14, 2011

Sony Ericsson confirms it’ll stop making feature phones in 2012

Sony Ericsson has reported its financial results for the third quarter of 2011 and has committed to a smartphone-only future.

Sales were up 33% on the previous quarter to 1.586 billion Euro (£1.388 billion), although this is slightly less than Q3 2010. Income before taxes was 31 million Euro - half the Q3 2010 figure but a dramatic improvement from the previous quarter’s loss. The company made neither a profit nor a loss during the quarter.

Bert Nordberg, President and CEO of Sony Ericsson, said “We delivered a solid 73 million Euro improvement in income before taxes as we rebounded from the previous quarter with a 33% increase in sales. Android-based Xperia smartphone sales now account for more than 80% of sales and we have shipped 22 million Xperia smartphones to date.  We will continue to invest in the smartphone market, shifting the entire portfolio to smartphones during 2012.”

A total of 9.5 million devices were shipped during the quarter, a 9% decrease year-on-year. This was due to a decline in feature phone shipments, despite an increase in smartphone shipments. Sony Ericsson estimates that its share of the global Android-based smartphone market was approximately 12% in volume and 11% in value during the quarter.

Recent rumours have suggested that Sony may want to buy its partner, Telefonaktiebolaget LM Ericsson, out of the ten-year-old joint venture.

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