Sony Ericsson Q4 results hampered due to outdated smartphone portfolio
Sony Ericsson AB, the mobile-phone venture of Sony Corp and Ericsson AB, registered a net income of 8 million euros ($10.7 million) in the fourth quarter, rebounding from a loss of 167 million euros in the year-earlier period. However the sales fell 13% to 1.53 billion euros.
Sony Ericsson AB attributed its modest figures to the outdated smartphones that the mobile phone makers marketed. In a statement, the company said, “Shipments were somewhat constrained by a lack of new product launches during the quarter.”
Chief Executive Officer Bert Nordberg is faced with a tough task of bolstering profit. Sony Ericsson replaced its top-end offering, the Xperia X10 with the Xperia Arc, which has 8 megapixel camera and Gingerbread on-board.
The sixth largest handset maker (according to Gartner Inc), shipped 11.2 million handsets in the quarter at an average selling price of 136 euros.
This was far below the estimated volume was 12.2 million units and average selling price at 148 euros. The company has also estimated its market share at 3 per cent in units and 5 per cent in value for the quarter, below its full- year shares.