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Sony Ericsson Q4: Phone Shipments Fall to 9 Million

January 20th, 2012 by Caroline

Sony Ericsson has published disappointing results for the last financial quarter.

Q4 results for the company reveal a 20% drop in year-on-year handset shipments – which fell to 9 million during the quarter. Sony Ericsson also announced a pre-tax loss of £205 million.

And the reason for the disappointing Q4 figures? This was down to “intense competition, unfavorable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter,” president and CEO of Sony Ericsson Bert Nordberg said.

The company is switching its efforts from feature phones to smartphones, after enjoying success with its Xperia range of devices. “The Xperia portfolio, including the recently announced Xperia NXT series, will serve as a cornerstone of our smartphone lineup in 2012.”

The Android-based smartphones experienced a 65% increase in sales year-on-year during Q4. Sales of Xperia phones accounted for about 80% of the total sales, and to-date Sony Ericsson has sold 28 million of these mobiles.

So the company will be hoping the Xperia S, the first in its next-generation series and the first to drop the Ericsson name, will be a hit when it lands in March. With a distinctive design and array of advanced features including a 12-megapixel camera and 1.5GHz dual-core processor, the new Sony mobile should be able to compete with other upcoming mighty mobiles like the Galaxy S3.

Sony Ericsson isn’t the only company to publish disappointing Q4 results. Both HTC and BlackBerry have experienced losses. In contrast, Apple and Samsung revealed healthy profits and strong sales for the last quarter, due to the popularity of the iPhone 4S model and Galaxy S and S II phones.

Do you think the Xperia S smartphone will be a big hit for Sony?


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