In Sony Ericsson has surprised the market by reporting a decline in sales and loss for Q2 2011. Analysts had been hoping for a $4.9 million profit. The companys supply chain had been severely impacted by the earthquake that hit Japan earlier this year and that is the primary cause of the slump.
Sony Ericssons has estimated that the earthquake-related constraints had effected the delivery of around 1.5 million units, with most of the effect being felt in the early part of the second quarter of the year. During the quarter a total of 7.6 million units were shipped and this represents a 31% decrease year-on-year.
The losses have also been aggravated because there has been a slight fall in the average price at which handsets get sold. Total sales for the quarter were nearly $1.7 billion, a 32 percent decrease year-on-year. Loss before taxes for the quarter was $59 million, compared to an income before taxes of $43.7 million for the same quarter in the previous year, due to lower volume.
However, investor sentiments in the company remain bullish, as the forecast for future is bright. Sony Ericsson has declared that smartphone sales have accounted for more than 70 percent of its total sales during the quarter. The company says it has shipped more than 16 million Android-powered Xperia smartphones to date.
According to the companys own estimates its share in the global Android-based smartphone market during the quarter was approximately 11 percent in volume as well as in value.
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