Communications firm Sony Ericsson has reported a drop in profits and revenues for the first quarter of 2011 amidst some concerns about its supply pipeline being affected by the recent earthquake in Japan.
The company has recorded €1.14 billion in sales for the first quarter while its net profits stood at just €11 million. Overall the company experienced a nineteen percent drop in its revenues year on year.
The company's relatively poor performance has been attributed to its inability to sell a significant volume of feature-heavy phones along with the adverse impact it suffered from th Japanese earthquake and tsunami.
The company has also reported a significant decline the in total number of units shipped while its share in the smartphone market remains low even by its own estimates.
The company is hopeful that its forthcoming line of Android-based devices, including the Xperia Arc and Xperia Play, will boost its profitability.
Despite the bad news, CEO Bert Nordberg remarked (opens in new tab)on the company website that “Sony Ericsson's profitability continues as we accelerate our shift towards an Android-based smartphone portfolio, with smartphones comprising over 60% of our total sales during the quarter.”