Sony Ericsson Mobile Communications has reported sales of EUR 1.53 billion for Q4 2010, down from EUR 1.75 billion a year earlier, with total units shipped reaching 11.2 million, down from 14.6 million in Q4 2009. Operating income reached EUR 39 million in Q4 2010, compared an operating loss of EUR 181 million a year earlier, with net income reaching EUR 8 million, compared to a net loss of EUR 167 million in Q4 2009. Sony Ericsson registered four consecutive quarters of profitability in 2010. CEO and President Bert Nordberg said this reflected the success of its shift towards an Android-based smartphone portfolio. During 2010 Sony Ericsson completed its company-wide transformation programme, improving its cost of sales ratio, reducing its global workforce by around 4,000 people in total, consolidating its facilities worldwide and decreasing annual operating expenses by more than EUR 880 million. The total restructuring charges for the transformation programme were EUR 381 million. Unit shipments of 11.2 million in Q4 2010 were down 23 percent year-on-year, consistent with the streamlining of the portfolio to focus on higher-end smartphones. Average selling price (ASP) for the quarter was EUR 136, a 13 percent increase year-on-year. The company has shipped over 9 million Android-based Xperia smartphones since launch. Sony Ericsson estimates that the global handset market for the full year 2010 increased slightly in volume to almost 1.2 billion units. The company estimates that the global handset market for the fourth quarter was essentially flat year-on-year and its market share for the fourth quarter was around 3 percent in units and around 5 percent in value. Sony Ericsson estimates that its market share for the full year 2010 was around 4 percent in units and around 6 percent in value. The company forecasts modest growth in units in the global handset market for 2011.
