Sony Ericsson reports euro 11 million Q1 net income

PanARMENIAN.Net - The broader adoption of Android platform for several of its smartphones is expected to work in favor of Sony Ericsson, which has lately revealed its total earnings for the first quarter ended March 2011 and revealed a net income of euro 11 million, according to mobiletor.com.

The company posted a gross margin of 33 percent which is an increase of approximately 2 percentage points when compared to last year and a raise of 3 percentage points sequentially. The total number of units sold during the first quarter was 8.1 million that is 23 percent decrease when pitted against a year-ago quarter.

Bert Nordberg, President and CEO of Sony Ericsson, cited “Sony Ericsson’s profitability continues as we accelerate our shift towards an Android-based smartphone portfolio, with smartphones comprising over 60% of our total sales during the quarter.”

This resultant decline is reportedly due to less number of feature phones being shipped as well as release of newer products towards the end of the quarter. The report discloses that the average selling price (ASP) in this quarter to be euro 141, a 23 percent increase as compared to previous year.

According to revealed statistics, Sony Ericsson’s total sales were euro 1,145 million which represents a 19 percent year-on-year decline. They also revealed an income before tax profit of just euro 15 million due to the impact of lower sales and lower operating expenses.