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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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