It's taken a long time but mobile handset company Sony Ericsson's reorganisation, and transition from selling average feature phones to focusing on high end smartphones seems to be paying off.
Driven by the launch of its first Android device, the Xperia X10, and the Symbian-based Vivaz, the average selling price of its phones rose in Q1 2010 to 134 ($180).
This is up 12 percent, compared to the last quarter and year-on-year.
In turn, this meant margins increased significantly to 31 percent, up from 8 percent year-on-year and from 23 percent in Q4 2009.
Win some, lose some
The number of units shipped was down however: 10.5 million compared to 14.6 million in Q4 2009 and 14.5 million in Q1 2009.
The result was a 19 percent drop in revenue year-on-year to 1.4 billion ($1.9 billion), but the company made a profit.
Its operating income was 20 million ($27 million), compared to a loss of 369 million ($498 million) in Q1 2009, and a loss of 181 million ($244 million) in Q4 2009.
Net income was 21 million ($28 million) compared to a loss of 293 million ($395 million) 12 months ago.
As of March 31, 2010, Sony Ericsson had 563 million ($759 million) in cash, which includes additional funding during Q1 2010 of 150 million ($202 million) from parent companies Sony and Ericsson on a 50:50 basis.
Full steam ahead
"We are pleased to see the positive impact of both the launch of new products and the business transformation programme improving the company's results," commented Bert Nordberg, Sony Ericsson's president.
"Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for our business organisation and strategy."
Sony Ericsson started its reorganisation program in mid-2008, reducing its global workforce by approximately 3,150 staff for a current total of 8,450. The cost to date has been 342 million ($461 million).
[source: Sony Ericsson]
News
Contributing Editor
A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.
Related Articles
Top Stories
News
5 hours, 1 minute ago
King and Flexion partner to bring Candy Crush Saga to App Gallery and more alternative app stores
News
5 hours, 56 minutes ago
Zynga’s Game of Thrones: Legends is open for pre-registrations with a July 25th release date
Feature
8 hours, 18 minutes ago
Mobile Mavens: Are today's everlasting, live ops games holding back new innovation?
Feature
9 hours, 46 minutes ago
The key takeaway from Apple's AI-laden WWDC keynote? It's time to buy a new iPhone
Events
Tribeca Games Festival 2024 | North America | Jun 5th |
Steam Next Fest: June 2024 Edition | Jun 10th | |
WN Conference Istanbul 2024 | Jun 11th | |
GamesForum Hamburg 2024 | Europe | Jun 11th |
ESI London 2024 | Europe | Jun 13th |
Game Con Canada (GCC) 2024 | North America | Jun 14th |
Indie Dev Play 2024 | Europe | Jun 14th |
DevGAMM Vilnius 2024 | Europe | Jun 14th |
Popular Stories
Interview
Jun 5th, 2024
A galaxy far, far away… Why Star Wars: Hunters took six years to hit the target
as
Feature
Jun 3rd, 2024