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Is Sony Ericsson looking to sell business?

Posted: , by Victor H.

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Is Sony Ericsson looking to sell business?

Sony Ericsson's first quarter results were controversial as the company beat analysts estimates by registering a net income of $15.7 million (11 million euro) profit, contrary to expectations that it will swing to a loss, but at the same time sales dropped even further by 19% to reach $1.64 billion (1.15 billion euro). As the company's share dwindles, is Sony Ericsson looking to sell its business? Judging by the latest rumors confirmed by Russian tech analyst Eldar Murtazin, the answer is yes.


The Swedish-Japanese joint venture has held talks with Chinese companies about an acquisition behind closed doors. Other companies that might be interested in acquiring the phone maker's business include former phone manufacturers Taiwanese BenQ and German Siemens. BenQ and Siemens worked on a series of phones released around 2006.


Sony Ericsson has continuously lost share since 2007 when the demise of its Cybershot lineup began only to lead to the company losing its positions to hold only 5% of the market, while in terms of value it has just 3% of it. The phone maker announced its fabulous four lineup at MWC this February featuring the SE Xperia Play, Xperia arc, Xperia neo and Xperia pro, but it was forced to push the release date of the Xperia neo to early third-quarter after a devastating tsunami in Japan hit its component supplies. On the flipside of things, it is on its way to gaining wider U.S. presence as the Xperia Play is expected to arrive on Verizon soon and the Xperia arc will also arrive on U.S. soil, but carrier arrangements haven't yet been announced.


Period...........................................................Q1 2010.....Q4 2010.....Q1 2011

Number of units shipped (mln)............................10.5...........11.2............8.1

Average selling price...........................................$192..........$196.........$203

Sales (mln).........................................................$2,022......$2,199.......$1,647

Gross margin (%)...............................................31%............30%..........33%

Operating margin (%).........................................1%..............3%............2%

Net income (mln)................................................$30.2...........$11.5.......$15.8


source: Eldar Murtazin (Twitter)


Is Sony Ericsson looking to sell business?

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posted on 20 Apr 2011, 05:07

1. what a guy (unregistered)


I will buy it, is one dollar enough? And what are those "chineese" companies Eldar is talking about? Siemens isn't "chineese", nor is BenQ.

posted on 20 Apr 2011, 07:35 1

4. SupraMon (unregistered)


they were sold to Chinese investors.

posted on 20 Apr 2011, 07:09 3

2. ribbonsalmark (Posts: 84; Member since: 06 Jan 2011)


This is just irresponsible reporting. First off, SE is one of the top tier Android phone developers. Second, SE just released a slew of new phones to the market. Third, two carriers just picked up Sony Ericsson Play. Forth, SE Play is the only playstation phone on the market, do you really think Sony would allow a sale of the company to someone other than themselves to continue this production? This is just horrible horrible reporting. You guys didnt even pick up on the fact that two providers have picked up to sale the Play in the US.

posted on 20 Apr 2011, 07:10 3

3. ribbonsalmark (Posts: 84; Member since: 06 Jan 2011)


Also any sale would need approval from both Sony and Ericsson.

posted on 20 Apr 2011, 13:38 2

5. dara (unregistered)


this is first grade bullsh*t!!
that eldar prick always had a pick on SE..heck he was the one prognosing their doom for years and bashing their products!

Now let us focus on facts..
- SE posted a profit in 5 consecutive quarters in a row(after huge losses and effective, efficient restructuring in 2009)
- SE did that in this last quarter despite the following facts: during the quarter their top range phone was still an xperia x10(old model with a ruined reputation), their last high specced release was a symbian running Vivaz(nuff said, although i own one and it's a good piece if you have an SPB shell ui app installed - but NOT competitive against new android phones), their X8 is stuck with android 2.1, cheap and low profitable, and x10 mini/mini pro aswel, also being a niche products.
- right now, SE is in the process of rolling out highly ambitious, characteristic, latest android running range phones - the Arc, Play, Neo, Pro..with Neo being an incredibly strong contender for the bestselling android on the market.
- during this year SE will also release the highly capable, decently priced mini succesors, and probably one top dog phone for the fall(Duo?)

summing it up, SE actually never looked this promising and selling it at this point would be the greatest bussines miss ever.

posted on 20 Apr 2011, 18:49 1

6. luis_lopez_351 (Posts: 951; Member since: 18 Nov 2010)


OMG! Google make your move! buy this crap and improve it :D

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