There had been grumblings in the past that Sony Ericsson would be lessening the amount of handsets they’d release around the world, in hopes that their profits would increase. Well, sure enough, it must have worked, because that’s exactly what happened. According to The Register, Sony Ericsson should be celebrating right now, as the company has posted a first quarter earnings, as opposed to a €370m first quarter loss in 2009. Good times indeed.
So, how’d they do it, and how does it compare to the estimates of analysts? We’ll start with the analysts, because we love to poke them with sticks (hey, we don’t get out much). Apparently, they averaged that Sony Ericsson would in fact post a significant loss this quarter. In fact, they pinned it at €157m. But, Sony Ericsson came out of no where, and has smacked all of them around. The company has posted a €18m pre-tax profit, which puts them somewhere in the good zone, at least for now.
Now, how’d they do it? After all, they actually sold a third fewer handsets than in 2009. Well, of those third fewer handsets, they were all in the top-tier. Meaning, while they sold fewer numbers of handsets in total, each of those handsets cost more for consumers to purchase. Sounds like a win-win to us. And according to SE, they’re planning on keeping with this track, with producing more high-end devices, and, hopefully, keeping the profit coming. We’ve got our fingers crossed! Unless, of course, you keep putting out phones like the XPERIA X10. Then, well, we can’t help you.
[via The Register]
