Latest IT News » Business It News » Sony Ericsson reports profit slump of nearly 50 percent

Sony Ericsson reports profit slump of nearly 50 percent

Sony Ericsson’s product portfolio depends increasingly on high-end smartphones like the Xperia Arc from (Image: Sony Ericsson). Sony Ericsson has earned in the first quarter 2011 net income of 11 million €. He is 48 percent below the same quarter of the surplus of 21 million €. Revenue shrank by 19 percent to 1.145 billion euros.

Despite the loss exceeds the quarterly earnings, according to Bloomberg, the expectations of analysts. They had predicted a loss of 27.1 million euros.

Between January and March, sold the joint venture by Sony and Ericsson phones 8.1 million, 2.4 million, or 23 percent less than in the first quarter of 2010. Finally, the company had designed its product portfolio more on high-end Android phones. This decision is reflected in an increase of 7 € to 141 € average price.

“Sony Ericsson’s profitability will be accelerated by the conversion of the portfolio on Android smartphones,” said Bert Nordberg, CEO. “In the last quarter accounted for more than 60 percent of sales on smart phones.” The quarter-end appliances presented Xperia Xperia Arc and play had arrived for consumers and mobile operators worldwide well.

The mobile phone manufacturers also feel the effects of the earthquake in Japan. The destruction has led to interruptions in the supply chain, which has impacted negatively on the sales figures. One week after the disaster had Sony Ericsson announced it count with problems, since in the affected region, many suppliers are located.

According to market research firm Gartner, the problems will continue. “The second and third quarters will be difficult for Japan,” Reuters quoted Gartner analyst Carolina Milanesi.

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