€247 million loss for Sony Ericsson
CEO blames economy and natural disasters for falling sales and profit
Mobile phone manufacturer Sony Ericsson has posted its results for Q4 2011, which showed a damning €207 million ($266 million) net income loss for the Q4 period, and a €247 million ($320 million) loss in net income for the whole of 2011.
In 2010 these figures stood at an €8 million profit for the same quarter, and a €90 million profit for the full year.
The figures also showed a drop in number of units shipped, which stood at 9 million for Q4, a 5 per cent fall compared to 11.2 million for the same period last year. Shipped units for the whole of 2011 fell 20 per cent to 34.4 million, compared to 43.1 million in 2010.
The downward trend continued with sales, at €5,212 million for 2011, down by €1.082 billion from 2010. For the quarter sales were at €1288 million, down by €240 million from the same quarter last year.
Average sales price for the phones were €143 in Q4, an increase on 2010's €136.
The management were keen to blame outside influences for the declining numbers.
"Our fourth quarter results reflected intense competition, unfavourable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter," said Bert Nordberg, CEO.
"We are aligning our business to drive profitability and to meet customer needs. In spite of these challenges, throughout 2011 we've shifted our business from feature phones to smartphones, and our Android-based smartphone sales in the quarter increased by 65 per cent year-on-year. The Xperia portfolio, including the recently announced Xperia NXT series, will serve as a cornerstone of our smartphone line up in 2012."
The company believes it currently has a 10 per cent share of the Android smartphone market, and predicts growth in 2012.
Sony acquired Sony Ericsson last October, with the deal expected to complete later this month, or in early February.