Sony Ericsson reports 247m euro loss
Mobile phone giant Sony Ericsson has posted a pre-tax loss of 247m euros over the fourth quarter of 2011, citing “intense competition” and “price erosion” for the dismal performance.
The dire figures follow a 16% drop in year on year sales to 1.3bn euros over the quarter and shocked analysts who had been predicting a modest profit.
The smartphone maker had previously reported a 31m euro profit for the third quarter of 2011.
Sony is currently in the final stages of a 1.05bn euro deal to buy out Ericsson from the 50:50 partnership by February.
Later this year Sony Ericsson plans to phase out its current feature phone line up, which currently accounts for 20% of its sales, to focus entirely on the smartphone market.