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Sony Ericsson loses another 167M euro, puts all hopes on X10

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22 January, 2010

Sony Ericsson

Sony Ericsson keep struggling with the challenging market conditions and recorded another losing quarter to end the 2009. Despite selling half a million handsets more than they did in the Q4 of last year they still scored a loss of 167 million euro.

As was to be expected, the holiday season increased the average selling price of the Sony Ericsson devices to 120 euro and the number of units sold to 14.6 million. Those numbers would have been even higher, had the XPERIA X2 and XPERIA X10 managed to reach the market in time but, alas, they didn't make it in time.

Meanwhile the company's painful restructuring continues and swallowed another 150 million euro. It should be able to save the company good 800 million euro a year in the end but we are already starting to doubt if they will survive long enough to enjoy the benefits.

The full 2009 financial report of Sony Ericsson shows that the company managed to ship 57.1 million handsets (41 decrease compared to 2008) for an average price of 119 euro (2.5% increase). The net loss for the period totals 836 million euro. Gulp!

Considering that the company has a net cash position of 620 million euro they have no chance of surviving yet another year like this so let's hope that, for the sake of competition, things start to improve.

With the forecasts being of a slight growth in units shipped in the global handset market in the upcoming year, it might just be good enough ground for the X10, X2 and the Vivaz to sell well enough to save the company. Perhaps we can even expect a major release next month at the MWC that should change the whole game.

For more numbers from the Sony Ericsson report follow the link.

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Reader comments

d
  • deejay
  • 9ym
  • 01 Feb 2010

SE is not Nokia or Samsung. I think SE has their own strategy how they can keep customers buying their handsets. From all the phones from the different manufacturers I've tested/used I can say that SE has the most user friendly user interface of them...

  • Reply
G
  • Gamma
  • u1E
  • 28 Jan 2010

I stand corrected. But my point is that, SE did a lot of R&D in the past and offered new technologies at lesser price than the competition. But it is the opposite not. Nothing new, all cheap at a steeper price products. Earlier Walkman like...

  • Reply
M
  • Mobil1
  • IAu
  • 28 Jan 2010

In response to Gamma Sharma: you state that SE: Remember SE totally invented / popularized: a) 2MP Camera (K750). b) Autofocus (K750). c) LED Flash (K750). d) Xenon Flash (K790). e) Touch Screen (P800). f) Accelerometer a.k.a mo...

  • Reply
  • Read all comments
  • Post your comment
Total reader comments: 297

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