Sony Ericsson has reported sales of €1.14bn for the first quarter ended 31 March 2011, a decrease of 19% compared to €1.4bn in the same period last year.
Units shipped in the quarter were 8.1 million, a sequential decrease of 28% compared to same period a year ago, and a decrease of 23% compared to same quarter previous year.
The average selling price (ASP) for the quarter rose to €141 during the quarter, a 5% increase year-on-year and a 4% increase sequentially, as a result of product and geographical mix more than offsetting price erosion.
Gross margin was 33% compared to 31% in the first quarter of 2010 and 30% sequentially. For the quarter, operating income was €19m compared to €20m in the same period a year ago.
The company posted a net income of €11m in the first quarter of 2011, compared to €21m in the same quarter last year.
Sony Ericsson president Bert Nordberg said they are pleased to see the positive impact of both the launch of new products and the business transformation programme improving the company’s results.
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"The Xperia X10, our first android-based Communication Entertainment device featuring signature Sony Ericsson applications Timescape and Mediascape, and Vivaz, a beautifully designed, touch-screen Symbian phone started shipping towards the end of the quarter. Both models have been well received by global customers," Nordberg said.
"Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for our business organisation and strategy. We will continue to work through the transformation programme to ensure that we are competitive."
