Feeds

Sony Ericsson still making money, to some surprise

€11m in profit during 2011, thanks to Google

Combat fraud and increase customer satisfaction

The explosion of Android handsets has kept Sony Ericsson in profit, to the surprise of the markets, which were expecting a significant loss for the first quarter of 2011.

With sales down by 23 per cent – to 8.1 million handsets – and gross revenue from those sales down to €1.1bn – from €1.4bn this time last year – one might be forgiven for thinking that Sony Ericsson was going to lose money. But 60 per cent of those handsets are now high-margin smartphones, and combined with enthusiastic cost-cutting this has handed the mobile giant a profit of €15m (€11m after taxes).

That's not as good as this time last year, and only slightly better than the tail end of 2010, both of which saw high revenues eaten up by restructuring costs and higher taxes, but it's still much better than most were expecting.

A Reuters poll of analysts was expecting losses of around €24m for the first three months of this year, but despite the Japanese earthquake disrupting its supply chain, Sony Ericsson has seen its Xperia handsets (including the PLAY and Neo) sell very well, showing that someone other than Google can make money from Android.

Sony Ericsson has also, finally, stopped restructuring, having apparently cut back enough for the moment, and is now settling into its role providing high-end Android handsets for a decent margin. ®

Top three mobile application threats

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.