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Sony Ericsson breaks even amidst Sony takeover rumors

The company didn't manage to turn a profit despite selling more smartphones

Sony Ericsson Mobile Communications barely broke even during the third quarter, and reported a small year-on-year drop in revenue as an increase in the average selling price of its phones was offset by a 9 percent fall in volume.

Revenue for the third quarter was about €1.59 billion (US$2.19 billion), compared to €1.6 billion a year earlier. Profitability declined too, with the company breaking even this year after making a €49 million profit in the third quarter last year.

Sony Ericsson shipped 9.5 million phones during the third quarter, a 9 percent decrease compared to the same period last year due to a decline in feature phone shipments. The drop was in part offset by an increase in smartphone shipments, the company said.

That change in product mix towards higher-end models drove the average selling price of Sony-Ericsson phones in the quarter up to €166, from €154 a year earlier.

Sony Ericsson plans to drop feature phones from its portfolio entirely during 2012: Currently, 80 percent of its revenue is from smartphones. The company has shipped 22 million Xperia smartphones to date. It estimates that its share of the Android-based smartphone market was approximately 12 percent in volume and 11 percent in value during the third quarter.

During a conference call to discuss the results, the company declined to comment on rumors that parent company Sony may buy out its partner in the joint venture, Ericsson.

Send news tips and comments to mikael_ricknas@idg.com


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