Sony Ericsson proved wrong the analysts, who predicted that Sony Ericsson will suffer a 128 million Euro loss. Moreover, Sony Ericsson posted a 21 million Euro profit! Sony Ericsson posted their first profit nearly after two years, they proved wrong to all who predicted that the company will soon perish.
Sony Ericsson still has a long way to go because even though they posted a profit but the number of handset sold, dropped to 10.5 million from 14.5 million. They lost 1% of the market share from 5% last year to 4%. This concludes that Sony Ericsson struck hard with their high end devices (Satio, Aino, W995).
Sony Ericsson stated that their cost reducing programme did the trick. President, Bert Nordberg, Sony Ericsson commented,
“We are pleased to see the positive impact of both the launch of new products and the business transformation programme improving the company’s results. The Xperiaâ„¢ X10, our first android-based Communication Entertainment device featuring signature Sony Ericsson applications Timescape and Mediascapeâ„¢, and Vivazâ„¢, a beautifully designed, touch-screen Symbian phone started shipping towards the end of the quarter. Both models have been well received by global customers.He added, Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for our business organization and strategy. We will continue to work through the transformation programme to ensure that we are competitive.
The Q1 report doesn’t include the Xperia X10 and upcoming Vivaz Pro which are very powerful devices. Well, it is good to see that they are slowly coming back on track and let us hope to see more innovative devices from them.