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Friday, January 22, 2010

Sony Ericsson says things are getting a bit better

Sony Ericsson's fourth quarter results are a mixed bag of improvements and declines. Shipments were up 3% from the previous three months to 14.6 million units, although this is 40% down year-on-year. Quarterly sales were €1.75 billion, up 8% from Q3 but down 40% year-on-year. The company says these year-on-year decreases were mainly due to a downturn in the global handset market and the unexpected popularity of mid-price touchscreen phones.

Net losses were €167 million; an improvement from a €187m loss year-on-year but slightly worse than the previous quarter.

Bert Nordberg, President of Sony Ericsson, said "The refreshed portfolio, coupled with the business transformation programme has started to positively impact our financial results. Continued cost saving activities and resource realignment are necessary in order to build a leaner, more efficient organisation capable of meeting the demands of the changing competitive landscape. We will continue to focus on returning the company to profitability by establishing Sony Ericsson as the communication entertainment brand based on an exciting portfolio of mid- and high-end products, such as our recently announced Android-based phone, the XPERIA™ X10. 2010 will still be challenging as the full benefit of cost improvements will not impact results until the second half of the year, however we are confident that our business is on the right track."

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