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Sony Ericsson Optimistic Despite €50 Million Loss

Mobile phone joint venture Sony Ericsson has posted a loss of €50 million for the quarter ending June 30 due to supply chain disruptions.

The company, confident about the second half and upcoming product launches, said that the massive earthquake and tsunami in Japan had disrupted its supply chain, affecting mobile phone sales.

Sony Ericsson revealed that it had sold 7.1 million mobile phone devices in the second quarter, a 31 percent drop in sales when compared to the same period last year. The company failed to meet analysts’ estimates of 8 million to 11 million units sold.

“We estimate that the impact of earthquake-related supply-chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter,” Sony Ericsson chief executive officer Bert Nordberg said in a statement.

The company revealed that smartphone accounted for 70 percent of its sales of $1.69 billion this quarter, with its Android based smartphones registering a 150 percent rise in sales on a year-on-year basis.

“We have introduced eight new Xperia smartphones this year and we continue to see strong consumer and operator demand across the Xperia smartphone portfolio,” Nordberg said.