Japan Earthquake Pushes Sony Ericsson To A Q2 Loss; Smartphones Account For 70 Percent Of Sales

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Daily Crunch: Smart Home

Sony Ericsson released its quarterly earnings this morning, reporting a surprise loss for Q2 2011 and declining sales. The earthquake that hit Japan earlier this year has a lot to do with the slump, as it had a major effect on the company’s supply chain.

The quarter ended in a net loss of €50 million (roughly $70.5 million), compared to a net income of €12 million ($17 million) in the same quarter in the previous year, and €11 million ($15.5 million) in the last quarter.

Sony Ericsson estimates that the impact of earthquake-related constraints on its product portfolio was close to 1.5 million units, with most of the effect in the early part of the second quarter of the year.

Total units shipped during the quarter were 7.6 million, a 31 percent decrease year- on-year. The average price per handset also fell, from €160 to €156.

Sales for the quarter were nearly €1,2 billion (roughly $1.7 billion), a 32 percent decrease year-on-year. Loss before taxes for the quarter was €42 million ($59 million), compared to an income before taxes of €31 million ($43.7 million) for the same quarter in the previous year, due to lower volume.

On another note: smartphone sales accounted for more than 70 percent of Sony Ericsson’s total sales during the quarter. The company says it has shipped more than 16 million Android-powered Xperia smartphones to date.

The company estimates that its share in the global Android-based smartphone market during the quarter was approximately 11 percent in volume as well as in value.