Sony Ericsson Publishes Q4 2011 Financial Statement; ‘Intense Competition’ Leads To Heavy Losses!

Earlier today, Sony Ericsson published its earnings for the last quarter (Q4,2011) and things are certainly not looking good for the company.

The company managed to ship 9 million handsets in the last quarter, which is 0.5 million less than the quarter preceding it.  The company had managed to ship 11.2 million handsets in the same time period during 2010. The average selling price of the handset also dropped sharply from 166 Euros in Q3 to 143 Euros in the last quarter. The company also posted a whopping 227 million euros operating income loss.

The only silver lining was that the company managed to ship 28 million Xperia smartphones in 2011, which accounted for 80% of its total sales. The official press release from Sony Ericsson states that they faced heavy losses in Q4 because of “intense competition, price erosion and restructuring charges.” The company also blamed the floods in Thailand and the natural disasters in Japan, that led to shortage of some key components of its Xperia handsets, as the reason behind its losses.

Hopefully, Sony Ericsson will have a much better 2012 in terms of sales and profits. The company has already taken some drastic decisions including the Ericsson stake of the company being brought by Sony.

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Rajesh Pandey

Rajesh is a 19 year old nerd, currently pursuing B.Com Hons from Bhawanipore college in Kolkata, India. He loves everything tech, especially Android. You can follow him on twitter @ePandu or mail to him at [email protected]