Sony Ericsson swings to profit in Q4 2010
Cell phone maker Sony Ericsson swung to a small net profit of $10.8 million (8 million euro) in the fourth quarter of 2010 after it registered a loss of nearly $224.8 million (167 million euro) in the same period last year. The company managed to get back to profitable this year after two consecutive years of losses.
At the same time, overall revenue of Sony Ericsson went down by 13% to reach $2.1 billion (1.53 billion euro). The company had revenue of almost $2.36 billion (1.75 billion euro) in the fourth quarter of 2009.
To boost profits, the Swedish-Japanese joint venture will rely on high-end Android handsets like the Sony Ericsson Xperia arc and the more affordable Sony Ericsson Hallon, also known as the MT15i or the Vivaz 2. The Xperia arc is expected in the first quarter of the year, while the MT15i might come in April. Let's not forget the much rumored Sony Ericsson XPERIA Play, which is expected to bring mobile gaming to the next level with PlayStation functionality.
Sony Ericsson made some extensive cuts laying off 4,000 people and lowering operating expenses by over $1.18 billion (880 million euro) to optimize costs.