Ships 10.5 million units during the quarter
Sony Ericsson has reported sales of €1.4bn for the first quarter ended March 31, 2010, a decrease of 19% compared to €1.74bn in the same period last year.
Units shipped in the quarter were 10.5 million, a sequential increase of 28% compared to same period a year ago, reflecting the streamlining of the portfolio over the past 12 months to focus on higher-end phones.
The average selling price (ASP) for the quarter rose 12% both sequentially and year-on-year to €134 during the quarter due to good sell through of existing models, new flagship phones starting to ship at the end of the quarter and a positive currency effect, the company said.
Gross margin was 31% compared to 8% in the first quarter of 2009 and 23% sequentially. For the quarter, operating income was €20m compared to a loss of €369m in the same period a year ago.
The company posted a net income of €21m in the first quarter of 2010, compared to loss of €293m in the same quarter last year. Sony Ericsson maintains a forecast of slight growth in units in the global handset market in 2010.
Bert Nordberg, president of Sony Ericsson, said: “We are pleased to see the positive impact of both the launch of new products and the business transformation programme improving the company’s results. 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.
“Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for our business organization and strategy. We will continue to work through the transformation programme to ensure that we are competitive.”