Sony Ericsson turns profit in 1Q

Sony Ericsson returned to profitability in 1Q10, despite reporting a 28% drop in handset sales year-on-year.
 
The firm said shipments of 10.5 million devices generated €1.4 billion in sales during the quarter, down 19% on 1Q09, but were sufficient to overturn a €293 million net loss in 1Q09 with a net profit of €21 million in 1Q10.
 
It blamed the lower handset sales on changes to its portfolio, and in particular a shift towards high-end devices. That shift helped it grow its average selling price 12% to €134.
 
President Bert Nordberg said the figures are the result of a cost reduction programme, along with the “positive impact” of new products, such as the Xperia X10, the vendor’s first Android-based device.
 
“Increases in both gross and operating margins show that we are on the right track,” Nordberg said.
 
Gross margin was 31% in 1Q10 compared to 8% in 1Q09, while operating margin hit 1% compared with -21% in 1Q09.
 
The firm has also appointed Sony stalwart William Glaser as its new CFO, replacing Ulf Lilja.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.