Sony Ericsson posts loss of $167 mn in Q4
Mobile phone maker Sony Ericsson today said its loss narrowed to $167 million in the fourth quarter of 2009 on account of sales of high-margin phones and cost cutting measures.business Updated: Jan 22, 2010 19:24 IST
Mobile phone maker Sony Ericsson today said its loss narrowed to $167 million in the fourth quarter of 2009 on account of sales of high-margin phones and cost cutting measures.
In the year-ago period, the company had a loss of USD 187 million, Sony Ericsson said in a statement.
"2010 will still be challenging as the full benefit of cost improvements will not impact results until the second half of the year, however we are confident that our business is on the right track," company President Bert Nordberg said.
Sony Ericsson, a 50:50 joint venture between electronics major Sony and Ericsson, said its sales decreased to USD 1.75 billion in the quarter under review from USD 2.91 billion in the fourth quarter of 2008.
Mobile phone firm's gross margin increased to 23 per cent in the fourth quarter of 2009 from 15 per cent in the same quarter last year.
"Gross margin percentage improved sequentially and year-on-year mainly driven by the successful sales of new, higher-margin phones as well as the positive impact of cost reduction activities," the company said.
The company shipped 14.6 million handsets in the fourth quarter, down 40 per cent from a year-ago period, and the average selling price fell slightly to 120 euros from 121 euros.