Feeds

Sony Ericsson stems losses with smartphone sales

Thank heavens for the Android bandwagon

Choosing a cloud hosting partner with confidence

Sony Ericsson had a good third quarter, turning in a respectable profit on higher-margin smartphones, but won't comment on the rumours that Sony is looking to buy out the partnership.

The last three months weren't as good as the same period last year: SE only turned in a pre-tax profit of €31m (£27m) compared to €62m (£54m) in 2010, but it's much better than the preceding quarter, when tsunamis and earthquakes contributed to the company losing €42m (£36.6m).

It would be even better if the whole profit hadn't been eaten up in restructuring costs, leaving the company to break even, but those shouldn't be recurring.

What's more interesting is the move towards smartphones, with Android-based devices now making up 80 per cent of device sales. The plan is to drop everything else over the next 12 months, making smartphones the only phones that Sony Ericsson will sell.

That pushes the average selling price up, and the margins too, leading the way to profitability.

What the company didn't comment on were recent stories that Sony is looking to buy out its long-term partner and take the operation in-house. Sony Ericsson was set up to combine Ericsson's radio expertise with Sony's experience in consumer products, but radio knowledge is less critical now that it can be dropped in as a commodity module (as Apple has demonstrated, antenna problems aside) so, the idea goes, Sony doesn't need Ericsson any more.

Ericsson won't sell out cheaply; JP Morgan pegged the price somewhere north of $1.3bn with possible ongoing patent costs also involved. Having been in the radio game a long time Ericsson has a lot of key patents, which are now increasingly important as protection against litigious competitors. And with the company now firmly seated on the Android bandwagon, it is going to need that protection. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.