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Sony Ericsson sales plummet in Q2

Shipments of Android-based smartphones decline 31% year on year

Sony Ericsson has reported a slump in sales in Q2 2011.
Sony Ericsson has reported a slump in sales in Q2 2011.

Handset maker Sony Ericsson reported a slump in sales in Q2 2011, leading to a net loss of $70.7 million in the quarter.

The company, which said its results had been hit by the Earthquake in Japan last March, shipped 7.6 million in Q2, a 31% decrease year-on-year and a 6% decrease sequentially.

The Japanese earthquake constrained the supply of critical components and also led to an anticipated decline in the number of feature phones shipped, Sony Ericsson said.

Sales for the quarter were $1,68 million, a 32% decrease year-on-year and a 4% increase sequentially.

The quarter ended in a net loss of $70.7 million, compared to a net income of $16.9 million in the same quarter in the previous year, and $15.5 million in the last quarter.

"Sony Ericsson's second quarter profitability was affected by the March 11 earthquake in Japan. We estimate that the impact of earthquake-related supply chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter," said Bert Nordberg, president and CEO of Sony Ericsson.

"Our shift to Android-based smartphones continues with smartphone sales accounting for more than 70% of our total sales during the quarter. We have shipped more than 16 million Xperia smartphones to date. We have introduced eight new Xperia smartphones this year and we continue to see strong consumer and operator demand across the Xperia smartphone portfolio."

Sony Ericsson estimates that its share in the global Android-based smartphone market during the quarter was about 11% in volume and 11% in value.

Sony Ericsson said it maintained its forecast for modest industry growth in total units in the global handset market for 2011.