Sony Ericsson returns to loss in spring 2011

Sony Ericsson on Friday at least temporarily returned to a decline after it posted a loss of 50 million euros ($70.7 million) for the spring. It blamed the Tohoku-area Japanese earthquake for disrupting supply and preventing it from shipping almost 1.5 million phones. Most of the impact was early on in the spring, but the company has had to recover and ended up dropping its shipments from 8.1 million phones to 7.6 million where it would have climbed back up.

The phone designer hinted that it still faced competitive problems. It took a 224 million euro ($316.9 million) cash flow loss that stemmed partly from an inventory build-up. Average prices for phones also dropped down by three points, although they were up 11 percent compared to the winter.

Executives were still hopeful and noted that smartphones were playing an even more important role. They made up 70 percent of Sony Ericsson's mix, and the Android-based sales that made up almost all of the lineup were up 150 percent.

Much of its future is riding almost exclusively on Android devices. Eight phones have been unveiled so far this year, some of which like the Xperia Pro have yet to ship. The Xperia Arc and Xperia Play have been relatively well-received as leaders but face heat from faster dual-core Android rivals as well as from the iPhone's dominance of key carriers and gaming.

By Electronista Staff