Sony Ericsson published the financial summary for the fourth quarter and the full year 2011. Sadly, the results show extremly bad performance when compared to the other giants in the market.
Reading through the report and analyzing it we understand that the company sold 43.1 million phones in 2010 but the sales dipped to 34.4 million phones in 2011. The sales ended with a net revenue of €1,528 million in Q4 2010 but the case was different last year; ie the sales ended with a net revenue of only €1288 million in Q4 2011, a 16% drop versus Q4 2010. Drastically, the company ended the year with a net loss of €247 million.
The most appropriate person to comment on this disappointing performance of the company would be Bert Nordberg, President and CEO of Sony Ericsson. I'll post his comment:
"Our fourth quarter results reflected intense competition, unfavorable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter. We are aligning our business to drive profitability and to meet customer needs. In spite of these challenges, throughout 2011 we’ve shifted our business from feature phones to smartphones, and our Android-based smartphone sales in the quarter increased by 65% year-on-year. The Xperia portfolio, including the recently announced Xperia NXT series, will serve as a cornerstone of our smartphone lineup in 2012"
He blames the intense competition, unfavorable economic conditions and floods in Thailand as the reasons for the company's loss. He also confirms that the company will be focusing on to Androids in the coming year and hopes that would boost the sales.
Also, Sony's reputation in the global market is a blessing and lets see how they handle the smartphone section (Sony Mobile Communications) in 2012.
Source: sony ericsson press release
Edited by neofactor.is3, 20 January 2012 - 02:18 AM.