Sony Ericsson having a Rocky moment
By Wilson • Jul 19th, 2010 • Category: Industry News
- Photo: Sony Ericsson
There was a time not too long ago when Sony Ericsson, as a company, was teetering. Many thought the mobile phones manufacturer may have to transform radically if it kept haemorrhaging cash the way it has been. Well, in a Rocky-esque moment, Sony Ericsson has risen yet again to deliver better-than-expected profits.
Go, Adrian! Adrian!
While historic competitors like the powerful Nokia slash their forecasted earnings, Sony Ericsson has been sitting on costs as well as revising its product mix to favour smartphones over feature phones. This Sony Ericsson smartphone strategy has worked out, as Reuters reports, with the average selling price across devices being €160 as opposed to Sony Ericsson’s forecast of €134. This 26 euros per handset difference pushed Q2 pretax profit all the way up to 31 million euros. This is a €334 million difference over the €283 million Sony Ericsson lost in the same quarter last year. Literally, like Rocky, the company seemed down and out, and found something extra somewhere, posting a profit two quarters running now.
Great hands, too

- Photo: Sony Ericsson
And to be fair to the quality of Sony Ericsson smartphones, this improved financial performance is well deserved. Q1 saw the company release its Vivaz smartphones and Xperia X10, but it wasn’t until the Q2 shipping of the Xperia X10 Mini and the Xperia X10 Mini Pro that Sony Ericsson began flexing its muscle. We liked the Xperia X10 Mini Pro so much it made our list of the top three mobile phones released in 2010. Sony Ericsson has once again began showing what made this joint venture a threat for other mobile phones makers.
All in all, Sony Ericsson expect growth in 2010 to trump that of 2009, and these surprising results over the disappointment of Nokia’s forecast revision and RIM’s disappointing first quarter may give this ‘rank outsider’ a chance. Cue ‘Eye of the Tiger’, please.
Have you any Sony Ericsson smartphones or would you consider purchasing any?
Tags for this article: Nokia, smartphone, sony ericsson










