Sony Ericsson has reported sales of €1.75bn for the fourth quarter ended December 31, 2009, a decrease of 40% compared to €2.9bn in the same period of the previous year. On a sequential basis, the company reported an increase of 8%.
Units shipped in the quarter were 14.6 million, a sequential increase of 3% and a year-on-year decrease of 40%. The company said that the year-on-year decrease in units and sales was mainly due to a downturn in the global handset market and a faster than anticipated shift to touch screen phones in the mid-priced sector of the market. The average selling price (ASP) for the quarter rose sequentially by 5% due to a more favourable product mix.
For the quarter, operating loss was €181m compared to a loss of €262m in the same period a year ago. Gross margin was 23.4%, improved sequentially and year-on-year mainly driven by the sales of new, higher-margin phones and the positive impact of cost reduction activities.
The company posted a net loss of €167m in the fourth quarter of 2009, compared to €187m in the same quarter last year. Sony Ericsson believes that the global handset market for the full year 2009 decreased in volume by around 8% year-on-year to around 1.1 billion units and that its market share in units for the full year 2009 was about 5%.
Bert Nordberg, president of Sony Ericsson, said: “The refreshed portfolio, coupled with the business transformation programme has started to positively impact our financial results. Continued cost saving activities and resource realignment are necessary in order to build a leaner, more efficient organisation capable of meeting the demands of the changing competitive landscape.
“We will continue to focus on returning the company to profitability by establishing Sony Ericsson as the communication entertainment brand based on an exciting portfolio of mid- and high-end products, such as our recently announced Android-based phone, the Xperia X10. 2010 will still be challenging as the full benefit of cost improvements will not impact results until the second half of the year, however we are confident that our business is on the right track.”
