Sony Ericsson turns profit with Android focus and cost cutting

Sony Ericsson returns to profitability in 2010 with Android smart phone focus, at expense of 4,000 jobs and certain production facilities, but sales and market share slip
Sony Ericsson posted profitability for 2010, and profitability in each consecutive quarter, a consequence of its aggressive staff cut backs, reduced production costs, slimmer portfolio and focus on Google’s Android system.

Its total handset shipments reduced 23 per cent in the year, from 57.1 million in 2009 to 43.1 million in 2010. Market share dropped with it.

It said it had shipped over nine million Android-based Xperia handsets globally since launch.
Sales revenue dropped also, from 6,788 million to 6,294 million.

But its average selling price, gross margin and profitability jumped on the back of its restructuring and focus on higher-end Android smart phones.

The company has axed 4,000 jobs axed across its business alongside several production facilities.

Its Android handsets garnered an average trade price of €146 in the period, compared with €119 for its 2009 range.

Operating expenses were reduced by over €880 million, it said, at a cost €381 million.

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