Feeds

Sony Ericsson stems losses with smartphone sales

Thank heavens for the Android bandwagon

Security and trust: The backbone of doing business over the internet

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. ®

New hybrid storage solutions

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.