Sony Ericsson Posts Third Consecutive Profit, Aided By Android Push
Sony Ericsson Mobile Communications AB, the mobile-phone venture of Sony Corp. and Ericsson AB, posted its third consecutive profitable quarter, aided by demand for smartphones running Google Inc.’s Android software.
Third-quarter net income was 49 million euros ($68.8 million) compared with a loss of 164 million euros a year earlier, the London-based company said. That fell short of the 59 million euros analysts had predicted, according to the median of 13 estimates collected by Bloomberg.
“Sony Ericsson’s overall performance is stabilizing,” Chief Executive Officer Bert Nordberg said today in a statement. “Smartphones now comprise more than 50 percent of our total sales and it is our ambition to become the global number one handset provider on the Android platform.”
Sony Ericsson turned profitable in the first quarter after six quarters of losses as it rolled out its Android phones in the U.S. and China. That boosted the average price for Sony Ericsson handsets to 154 euros in the third quarter from 114 euros a year earlier as more consumers embraced Android as an alternative to Apple Inc.’s iPhone.
Prices declined from last quarter’s high of 160 euros as the company added mid-priced phones to its lineup.
Sales were little changed at 1.6 billion euros, missing estimates. Revenue had been predicted at 1.82 billion euros, based on 16 analysts’ estimates.
Sony Ericsson cited “product and geographical mix” as the reason for lower sequential selling prices.
To contact the reporter on this story: Diana ben-Aaron in Helsinki at dbenaaron1@bloomberg.net.
To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net.
Sony Ericsson CEO Bert Nordberg
Xabier Mikel Laburu/Bloomberg
Sony Ericsson CEO Bert Nordberg, seen here, said today in a statement, “Smartphones now comprise more than 50 percent of our total sales and it is our ambition to become the global number one handset provider on the Android platform.”
Sony Ericsson CEO Bert Nordberg, seen here, said today in a statement, “Smartphones now comprise more than 50 percent of our total sales and it is our ambition to become the global number one handset provider on the Android platform.” Photographer: Xabier Mikel Laburu/Bloomberg
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