Sony will face a tough time turning around the fortunes of Sony Ericsson, which it will soon own outright, after the handset manufacturer posted a staggering net loss of €207m ($265m) for 4Q11. The loss is in contrast to the €8m profit the firm posted in the same quarter a year earlier.
Whether or not the timing of the announcement was a happy coincidence is known only to Sony and Ericsson themselves, but it was an unusual press conference. The invite didn’t come until just before half past seven Thursday morning – for a conference starting at ten the same day – and the whole affair was resolutely low-key, with Hans Vestberg and Howard Stringer on a temporary stage in a subterranean conference room in a hotel by Tower Bridge. This isn’t the way these things normally work.
Handset player Sony Ericsson seemed to have caught the telecoms analyst and press community off guard on Thursday morning, calling an early press conference to announce its joint venture split, just as most interested parties were making their way to Nokia World in London.
The owners of handset joint venture Sony Ericsson are to part company, with Japanese electronics firm Sony acquiring the 50 per cent share of the JV held by Sweden’s Ericsson for €1.05bn. The announcement comes ten years after the formation of Sony Ericsson, which saw two struggling handset units combined in the hope of marrying Sony’s consumer electronics expertise and Ericsson’s telecoms experience.
Sony Ericsson has reported a net profit figure of zero for the third quarter of 2011, as company continues to struggle in the increasingly competitive handset market.
What does it mean when the executives start jumping ship from Nokia to Sony Ericsson? This week Tommi Laine-Ylijoki, who worked until recently as VP of materials management at Nokia, joined Sony Ericsson as head of operations, reporting directly to CEO Bert Nordberg.
In a week during which the UK distinguished itself as the “Whiplash Capital of Europe” thanks to its rep for filing dodgy insurance claims, The Informer is pleased to note that, in the technology world at least, injury-preventing U-turns have been the order of the day.
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Sony Ericsson has launched its own channel on the Android Market. The handset maker claims that it is the first manufacturer to offer such a service, which will be operator-dependent. Owners of Sony Ericsson handsets will now see the “my apps” feature on their Android phone replaced with the Sony Ericsson channel, although they will still be able to access “my apps” from the phone’s menu. While this last change may cause consternation among some users, Xperia users may find direct access to software geared specifically towards them handy
Handset vendor Sony Ericsson has reported net profit of €8m for the Q4 2010, marking its fourth consecutive quarter in profit. Net income for full year 2010 was €90m, the firm said, compared to a loss of €836m for 2009. President and CEO Bert Nordgberg described 2010 as “a turnaround year” for Sony Ericsson, and attributed improvements in the firm’s fortunes to its “shift towards an Android-based smartphone portfolio.”
Users of Android handsets place the greatest up- and downlink demands on mobile data networks according to a study carried out by location-based network management firm Arieso. The study used the data usage profile of iPhone3G owners as a benchmark and looked at usage patterns for a range of handsets, including the Blackberry Bold, the Google Nexus One, the HTC Desire, the Sony Ericsson Xperia and the iPhone4.
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