Sony Ericsson today posted their Q1 results for 2010, and the results are… good!
Despite most analysts predicting a net loss (a recent Reuters poll of analysts showed an average estimated loss of €157m), Sony Ericsson have gone and surprised everyone by turning a €18m profit.
This time last year they posted a €370m loss, and have posted losses for the last 7 quarters. Needless to say, this is a great turn-around for the company.
Staff cutbacks and a shift of focus to higher-margin smartphones are to thank, with this profit coming despite selling about 28% less handsets than they did in Q1 2009. Their new strategy has meant their average price of handset has now increased from €120 to €134, and their margins have shot up from 8% to 30%.
[via The Register]