Forums - Sony Discussion - Sony Ericsson: Qtr4 $266m loss.

SE loses $266m in just the last quarter of 2011 against a profit of $10m in same quarter last year. 

Sony Ericsson Reports Fourth-Quarter Net Loss as Sales Decline

By Diana ben-Aaron - Jan 19, 2012 9:06 AM GMT

Q

Sony (6758) Ericsson Mobile Communications AB, the mobile-phone joint venture being acquired by parent Sony Corp., reported its second quarterly loss in a year as competition in the Android smartphone segment increased.

The fourth-quarter net loss was 207 million euros ($266 million) compared with 8 million euros in profit a year earlier, the 50-50 handset partnership of Sony and Ericsson AB said in a statement today. Analysts had expected profit of 12.4 million euros, according to the average of seven estimates compiled by Bloomberg. Sales dropped 16 percent to 1.29 billion euros and missed the 1.69 billion-euro average of nine estimates.

Sony agreed in October to buy Ericsson’s stake in the 10- year-old joint venture for 1.05 billion euros to tap into demand for smarter consumer electronics after its main television business declined. The Tokyo-based company aims to compete with companies such as Samsung Electronics Co. (005930) by integrating the smartphone business with other home electronics such as the Xperia game consoles. London-based Sony Ericsson already makes an Xperia Play handset.

“Our fourth-quarter results reflected intense competition, unfavorable macroeconomic conditions” and floods in Thailand that disrupted production, Chief Executive Officer Bert Nordberg said in the statement.

The Sony acquisition is expected to close in late January or February after receiving regulatory approvals, the joint venture said.

Sony Ericsson shipped 9 million handsets in the quarter, 20 percent fewer than a year earlier, including low-end models that are being phased out. Average selling price was 143 euros, declining 14 percent from the third quarter. The company estimated its share of the Android-technology handset market at 10 percent in volume and 7 percent in value for the quarter.

To contact the reporter on this story: Diana ben-Aaron in Helsinki atdbenaaron1@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

 



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I guess the new Xperia line up didnt do so great or is this a result of older models being less prominent? I actually thought the Xperia ARC garnered a nice following.

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Just don't see them making any headway :

1b to make up plus whatever they lose from next Q onwards ... will they ever see that back?

 

Seece said:
Just don't see them making any headway :

1b to make up plus whatever they lose from next Q onwards ... will they ever see that back?


Well its Sony only now so any profits (or losses) are all theirs.... but I am struggling to see why the brand will suddenly turn 180 degrees.

Clearly the brand as a mobile phone is falling fast and making such massive losses takes some stopping.



Shinobi-san said:
I guess the new Xperia line up didnt do so great or is this a result of older models being less prominent? I actually thought the Xperia ARC garnered a nice following.


well this loss is for just Oct, Nov and Dec 2011.



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kowenicki said:
Seece said:
Just don't see them making any headway :

1b to make up plus whatever they lose from next Q onwards ... will they ever see that back?


Well its Sony only now so any profits (or losses) are all theirs.... but I am struggling to see why the brand will suddenly turn 180 degrees.

Clearly the brand as a mobile phone is falling fast and making such massive losses takes some stopping.

Indeed, MS/Nokia are struggling and they actually seem to have a decent strategy behind them. Xperia is going nowhere fast, not sure who thought it was a bright idea to do a gaming centric phone ...



 

Seece said:
kowenicki said:
Seece said:
Just don't see them making any headway :

1b to make up plus whatever they lose from next Q onwards ... will they ever see that back?


Well its Sony only now so any profits (or losses) are all theirs.... but I am struggling to see why the brand will suddenly turn 180 degrees.

Clearly the brand as a mobile phone is falling fast and making such massive losses takes some stopping.

Indeed, MS/Nokia are struggling and they actually seem to have a decent strategy behind them. Xperia is going nowhere fast, not sure who thought it was a bright idea to do a gaming centric phone ...

the same people that think dedicated handhelds have a long term future... kinda contradictory isnt it.



That's quite a steep loss.

Not sure if it's wise for them to continue the SE brand, let alone buy-out Ericsons share.

can someone brand that with sony's name?  i'm terrible at photo editing.



        

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lol thats a lot of money wasted. 1 billion to buy and it aint gettin any better

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