Sony Ericsson posted poor financial results for Q2 2011, with a â¬50 million ($70.7 million) net loss, compared to a net profit of â¬12 million ($16.9 million) for the same period last year.
The reason for the disastrous quarter, Sony Ericsson claims, was the earthquake and tsunami that hit Japan in March and hurt the company’s supply chain.
Sony Ericsson sold 7.6 million mobile phones this quarter, a 31 percent drop compared to Q2 2010.
“Had it not been for the earthquake and the supply chain constraints we would have shipped 1.5 million more units and we would have been profitable during the second quarter,” Sony Ericsson CEO Bert Nordberg told Dow Jones Newswires.
It’s not all bad news, though: Sales of Sony Ericsson’s Xperia smartphone series were up 150 percent from 2010. Overall, smartphones accounted for 70% of sales while the demand — and subsequently, Sony Ericsson’s sales — for feature phones dwindled.
[via AFP]
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