Sony Ericsson Posts Small First Quarter Profit

Of all the different handset makers out there, Sony Ericsson seems to be one the most interesting ones to follow when it comes to the companies financial side. The company which has previously seen huge losses was able to post a €21 million net income during the prior quarter, mainly thanks to tax benefits. With no tax benifits to aid the companies bottom line, the joint venture between Japan’s Sony Electronic and Sweeden’s Ericsson was able to bring in €
11 million ($15.7 million) for their first 2011 quarter which ended on March 31st. The companies operating income was €19 million which faired much better then a forecasted operating loss of €15 million.

With the number of handsets shipped dropping to 8.1 million from 10.5 million of prior quarter, sales fell 19% year-on-year to €1.15 billion. Still, Sony Ericsson was able to pull out a 33% gross margin profit on each unit, versus the 31% from the year prior. With Sony Ericsson fully embracing the Android platform and releasing muliple smartphones, the average selling price of handsets sold rose to €141, up 5% year-on-year.

“On profitability, the results are better than we expected, but that’s because they sold fewer of the more basic feature phones. That explains the volume drop and the ASP increase,” said Hakan Wranne, an analyst at Swedbank.

Sony Makes $887 Million Net Profit in Q3, Sees Rise in Sales in Most Divisions

Sony has just announced their Q3 Holiday results with ¥137.5 billion (approximately US $1.68b) operating income and a total of $887 million in net profit. Compared to 2009, this is actually down by nearly 6% though this is mostly due to a 5% stronger yen and not an actual reflection of the companies performance. Sony’s Consumer, Professional and Devices  division dropped 47 percent to ¥26.8b ($327.3m) as margins have shrunk, thanks to the global recession, factored with already fierce competition between rivals like Samsung and LG. On the other hand, Sony’s Networked Products and Services (which includes the PlayStation brand) saw a dramatic 134% jump to ¥45.7b ($559.78), helping offset the decline of the consumer products.

The good  news for Sony is that in midsts of all the woes mentioned above, the electronic giant was able to raise unit sales in almost all divisions compared to 2009. Bravia sales were up 2.5 million, totaling 7.9 million. Video cameras was able to sell only .1 million more, an expected decline with most portable devices now having some form of video capturing method built in while Compact Digital Cameras saw a 1 million unit sales increase. The now profitable PlayStation division saw the PS3 lose .2 million units compared to the 2009 Q3 but is ahead of 2009 sales. The PlayStation 3 saw a total of 13 million unit sales in 2009 while the company now sits at a healthy 15 million units sold and still has another quarter to go. The same cannot be said for the PlayStation Portable which saw sales slip .6 million units, down to 3.6 million units. Now in its 11th year, the PlayStation 2 still managed to sell 2.1 million units, on par with the year prior.

Software sales on the other hand were a completely different story with sales raising both on the PS3 and the PSP. PlayStation 3 software sales were up an amazing 10 million units, with 57.6 million pieces of software sold. The PSP, though down in hardware sales also saw an increase in software consumption with a 1.5 million unit increase to sit at 16.5 million units of software sold. The PS2 on the other hand took a big hit, seeing a 5.9 million unit drop, down to 5.3 million.

[Via Sony]

Sony Ericsson Ships 9 million Xperia Android Phones

With Sony Ericssons Q4 results in, it turned out to be a case of good news bad news for the struggling partnership that has been having high hopes on their new phones. In the last year, Sony Ericsson has been looking to turn their fortunes around, especially with the rise of popular devices like the iPhone and Android has been their savior like almost all other phone makers. During this time, Sony has released the Xperia X10, X10 Mini, X10 Mini Pro which have now surpassed 9 million shipped. This is the good news for Sony and this achievement is that much more impressive when you consider that the Xperia X10 is the only one of the series that was released in the US and it was a product that was never advertised. Other sites have noted that this is equally impressive because most of this fleet was running around during 2010 with the outdated Android 1.6 and only recently saw an upgrade path to 2.1. Still the bad news is that this comes as profits dip with the company reporting a moderate €35 million pre-tax profit for Q4. Though this is below what the company had hoped for and lower then previous quarters, this is still a large turnaround for a division that was losing money left and right just a little over a year ago.

Sony Profits Boost High Last Quarter

Sony profits are rising and came to $294 million net profit for the April-June quarter. Revenue for Sony grew 3.8%. This was mostly because of rising TV and Playstation sales internationally. In this last quarter alone, Sony sold 5.1 million LCD TVs which is 59% higher than last  year’s numbers.  PS3 sales more than doubled (yay) and sold 2.4 million units. Along with these rising sales, music sales also rose with music from the hit show “Glee” and “Iron Man 2” soundtrack.  At Sony’s briefing for analysis, Sony’s new Chief Financial Officer Masaru Kato said:

“We do have good products and good momentum, and we want to build on this so that our business keeps improving.”

I’m glad to see a stronger demand for the PS3 because it really “does everything” and is a must own for optimal gaming and blu-ray viewing. With Sony releasing new products like their 3D TVs, Playstation Plus and pairing up with Google Inc. and Logitech International to offer internet on their TVs I think (and hope) sales continue to rise for Sony.