Following projections that had suggested the company would post a net loss, Sony Ericsson has revealed it managed to turn a surprise profit in Q1 2011 despite a 23 percent drop in shipments year-on-year.
Across the course of the quarter, the firm shipped 8.1 million handsets to retail down from 10.5 million in the same quarter in 2010.
Sales also fell by 19 percent to 1.15 billion.
However, the higher average selling price of each device sold - 141 to 134 in Q1 2010 enabled the firm to post a net income of 8 million.
Switching to smartphones
That's down from the 21 million it made in the same quarter last year, when a tax benefit inflated the bottom line.
However, Sony Ericsson's transition from selling feature phones to higher-priced smartphones is seen as an encouraging indicator of the firm's health moving forward.
"Sony Ericsson's profitability continues as we accelerate our shift towards an Android-based smartphone portfolio, with smartphones comprising over 60 percent of our total sales during the quarter," said CEO Bert Nordberg.
"Towards the end of the quarter we introduced the highly anticipated Xperia arc and Xperia Play, which have been well received by both operators and consumers around the world.
"However, the Japan earthquake made it a challenging quarter operationally and we are experiencing some disruptions to our supply chain."
Bulging borrowings
Sony Ericsson's income before taxes for the quarter came in at 15 million down 3 million year-on-year.
The firm has also revealed negative cash flow of 353 million from operating activities. The company borrowed 375 million from external sources across the quarter to enhance its liquidity and growth, resulting in total borrowings of 604 million.
Total cash balances on March 31 stand at 599 million.
Sony Ericsson estimates that its smartphone market share sits at 5 percent for units, and 3 percent in terms of pure market value.
[source: Sony Ericsson]
News
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.
Top Stories
News
Apr 27th, 2024
PocketGamer.biz Podcast Week in Views E09 - Supercell's Squad Busters goes global, Embracer Group splits, and Apple's Vision Pro flops
News
Apr 26th, 2024
Week in Views - Squads busted, Apple crushed, War zoned and Snoozin' with the Snorlax…
Feature
Apr 26th, 2024
Speaker Spotlight: Dubai Future Foundation's Faisal Kazim on leading Dubai's gaming charge
Events
Dubai GameExpo Summit 2024 | Middle East | May 1st |
The MENA Games Industry Awards 2024 | Middle East | May 2nd |
GameDev Atlantic 2024 | May 4th | |
Mobidictum Meetup Berlin May 2024 | Europe | May 7th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Israel Mobile Summit 2024 | Middle East | Jun 6th |
DevGAMM Vilnius 2024 | Europe | Jun 14th |
Develop: Brighton 2024 | Europe | Jul 9th |
Popular Stories
News
Apr 23rd, 2024
Supercell’s Squad Busters soft launches today with over 100,000 Google Play downloads
News
Apr 25th, 2024