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Tuesday, July 20, 2010

Financial Times, Wall Street Journal, Dagens Industri, Dagens Nyheter, Svenska Dagbladet
Sony Ericsson increased its revenues by 25 percent in Q2, as its focus on Android-based smartphones has paid off, reports FT. The company grossed EUR1.75 billion, shipping 11 million handsets, and generated a profit of EUR12 million and a cash flow of EUR46 million. “I am proud that we have both made cuts and implemented a strategy change. From almost zero a year ago, smartphones now account for half of our revenues,” says Bert Nordberg. The average sales price is the highest in five years, at EUR160 per handset. Aside from the successful smartphones, the main contributing factor to the recovered profitability is the massive cost-cutting program, which has shed 4,000 employees and is expected to cut expenses by EUR883 million, writes SvD. But Nordberg says he will not rest until the profit margin reaches ten percent. That margin is currently at two percent. The CEO also told DI that he wants his company to become the number-one maker of Android handsets, and to achieve that, Sony Ericsson has hired Ericsson veteran Jan Uddenfeldt to head its development.

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