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Sony Ericsson cut down some loss in Q3, but are still way behind

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16 October, 2009

Sony Ericsson

Just as promised, Sony Ericsson revealed their financial report for Q3 2009 today. Things are still looking pretty gloomy for the company, continuing to lose money, but at least the numbers are better this time around (compared to the previous quarter).

The company has managed to ship 14.1 million handsets, which according to the company analysts, accounts for 5% market share. This is a 0.3 million increase over Q2, but still 11.6 million lower than Q3 2008.

The operating income of the company is in fact a loss of 193 million euro. While this by itself is pretty bad it shows sings of improvement over the 274 million euro loss in Q2 2009.

The average selling price of the Sony Ericsson handsets has dropped to 114 euro, from 122 euro in Q2. However this is still higher than the 109 euro ASP recorded in Q3 of 2008.

The hopes of the troubled company for survival depend on the cost-cutting programs started since mid-2008, which should reduce annual operating expenses by 880 million euro. The effect of those programs however will be felt in the second half of 2010.

In shorter terms we expect the market release sales of the Satio, Aino and Yari to have a positive effect on the company's result for the last quarter of the year. An announcement of the XPERIA X3 would also most probably benefit the profit quite a bit.

For more details and numbers you can find the full report here.

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Reader comments

S
  • SE STILL roxxx!!!
  • uRA
  • 26 Oct 2009

SE has always been the ONLY brand that offers you GOOD LOOKIN phnes...for all the samsung fans...can u plz give me a single phone that looks even DIFFERENT..n NOKIA fans wont b able to give me one phone that doesnt look bulky..i ve also used samsung...

  • Reply
?
  • Anonymous
  • Er2
  • 21 Oct 2009

But isn't SE being much larger than HTC in terms of market share?

  • Reply
r
  • raptor
  • fvW
  • 20 Oct 2009

i hope SE survive . when one company dominate it is not cool as diversity and creativity will disappear. having lots of operating companies fuels creativity and competition

  • Reply
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  • Post your comment
Total reader comments: 38

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