Mobile phone manufacturer Sony Ericsson has reported a surprise return to profitability during its first quarter, despite a 19pc fall in sales during the period, thanks to its decision to focus on higher-end phones.
The phone maker said it made a pre-tax profit of €18m during the first three months of the year. This is compared to the loss of €190m the group made during the previous quarter and the loss of €370m it made during the same quarter in 2009.
The company shipped 10.5m units in the first quarter, a decrease of 28pc compared to the same period last year. This, Sony Ericsson said, reflected the streamlining of its portfolio over the past 12 months to focus on higher-end phones. Sales for the quarter were €1.4bn, a decrease of 19pc year-on-year.
However, the company’s average selling price (ASP) for a mobile phone increased 12pc both sequentially and year-on-year to €134 during the quarter. This was 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, 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,” said Sony Ericsson president Bert Nordberg.
Sony Ericsson also said it was maintaining a forecast of “slight growth” in units in the global handset market in 2010.
Sony Ericsson appoints new CFO
The company also today announced that it has appointed Bill Glaser as its new chief financial officer.
Glaser (47) is a former Sony Corporation vice-president and head of Sony Group’s risk office.
He will replace Ulf Lilja, who will return to Ericsson on 31 July.
Article courtesy of Businessandleadership.com