Sony Ericsson chief eyes profit in 2010

Sony Ericsson, reeling from five straight quarterly losses, expects to return to profitability next year, according to its new chief executive. To get there, the company expects to launch a new smartphone strategy, as well as new cost-cutting measures.

"The goal is to be profitable next year," CEO Bert Nordberg said, according to Dagens Industri newspaper. "If the market continues to stabilize and we are successful with our new products, we will profitable next year." Nordberg added the company plans to launch a new program next year that will save $1.3 billion.

The struggling handset maker posted a $245 million net loss Friday amid sagging sales. However, in a bit of bright news, Sony Ericsson announced credit facilities of $676.3 million, with around $520 million of them guaranteed by its parent companies on a 50/50 basis.

As part of its new strategy, Nordberg said the company plans to broaden its smartphone portfolio. Sony Ericsson currently supports its own proprietary platform as well as the Symbian and Windows Mobile operating systems, and has plans to produce Android phones in the future. Thus, the company's stretched OS position has fueled speculation that Sony Ericsson may reduce the number of platforms it supports.

For more:
- see this Reuters article [1]
- see this IDG News Service article [2]
- see this Dow Jones Newswires article [3] (sub. req.)

Related Articles:
Sony Ericsson reports $245M loss, but gets new financing [4]
Sony Ericsson taps Nordberg as new chief [5]
Sony Ericsson posts $301M net loss [6]
Sony Ericsson sees Q4 turnaround, announces new phones [7]
Sony Ericsson needs at least $135.5M in new cash [8]
[9]