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Sony Ericsson earnings: smaller but more profitable

by Scott Bicheno on 20 January 2011, 14:05

Tags: Sony Ericsson

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Back in black

It's starting to look like Sony Ericsson's Android smartphone strategy is paying off. Despite the fact that it's consistently behind rivals such as HTC and Samsung in getting newer versions of the OS onto its handsets, focusing on Android, as well as operating expenses, pushed SE back into the black for FY 2010.

We've reproduced the recently-announced Q4 and full 2010 figures for SE below. Note that while the number of units shipped dropped considerably, sales in Euros didn't fall by nearly so much due to the considerably improved average selling price.

This may well have been a contributor to the massively improved gross margin figure, although this will be more due to ‘streamlining'. As a result, SE managed to turn a big net loss in 2009 into a modest profit last year.

"2010 was a turnaround year for Sony Ericsson," said SE CEO Bert Nordberg. "Our four consecutive quarters of profit reflect the success of our shift towards an Android-based smartphone portfolio." SE had shipped over nine million Xperia phones since their launch.

 

 

 Q4 2009

 Q3 2010

 Q4 2010

 FY 2009

 FY 2010

Number of units shipped (million)

14.6

10.4

11.2

57.1

43.1

Sales (Euro m.)

1,750

1,603

1,528

6,788

6,294

Gross margin (%)

23%

30%

30%

15%

29%

Operating income (Euro m.) 

-181

63

39

-1,018

159

Operating margin (%)

   -10%

4%

3%

-15%

3%

Restructuring charges (Euro m.)

-150

-4

-3

-164

-42

Operating income excl. restructuring charges (Euro m.)

-32

67

43

-854

202

Operating margin excl. restructuring charges (%)

-2%

4%

3%

-13%

3%

Income before taxes (IBT) (Euro m.)

-190

62

35

-1,043

147

IBT excl. restructuring charges (Euro m.)

-40

66

39

-878

189

Net income (Euro m.)

-167

49

8

-836

90

 

 

 

 

 

 

Average selling price (Euro)

120

154

136

119

146

 



HEXUS Forums :: 1 Comment

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Well the x10 is my first and last se phone. You can't just dump customer with such arrogance (2.1 with custom UI is better than 2.2 - sure)