Sony Ericsson to Focus Solely on Smartphones in 2012

October 14, 2011, By Sanjeev Ramachandran

Sony Ericsson is to focus entirely on the Smartphone market from 2012. The company said that they will continue to invest in the Smartphone market and will be shifting their entire portfolio to smartphones by 2012, which means that Sony Ericsson will leave feature phones behind.

Bert Nordberg, President and CEO of Sony Ericsson delivered its Q3 financial data announcing the shift of focus. The financial data revealed that Sony Ericsson achieved a solid 73 million Euros improvement in income before taxes.

 

It made a 33% increase in sales than the previous quarter of 2011 with an average selling price of 166 Euros per device. 80% of Sony Ericsson’s sale in Q3 was from its Android based Xperia models with a sale of 22 million phones.

Sony Ericsson found that the current Smartphone market is on booming state and that the company will benefit by this shift to smartphones. The company found that a total of 9.5 million units shipped during the third quarter gave a nine percent decrease on year-to-year figures caused by a drop in the shipment of feature phones.

But this decrement was partially offset by the increase in smartphone shipments. The 25% increase in quarter-to-quarter was gained by higher volume of smartphone shipments.

Smartphones currently make up over 80% of all Sony Ericsson’s sales. The company said that its share in the global Smartphone market in Q3 was around 12% in volume and 11% in value.

Operating Margin of the company got down to 2% from 4% this year. Sony Ericsson, the world’s ninth largest handset maker, hopes to attract its wide gadget users by the shift of its entire portfolio into smartphones by 2012.

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