Advertise with fastmoving.co.za
 
 

Sony Ericsson slips into the red ahead of rebrand
Sony Ericsson slips into the red ahead of rebrand

Sony Ericsson slips into the red ahead of rebrand

FMCG SUPPLIER NEWS

Brand Republic.com - Jan 20th 2012, 13:59

Sony Ericsson has announced losses of €207m (£173m) for the fourth quarter of 2011, well below analysts expectations, shortly before it finalises the acquisition by Sony of Ericsson's stake in the business 

The company blamed some of the losses on a €93m restructuring charge incurred in December as it looked to reduce costs and become more competitive ahead of it becoming a wholly-owned subsidiary of Sony.

Sony Ericsson’s loss in the quarter ending 31 December comes as a particular shock after some analysts predicted it would make a profit. It compares to a flat third quarter and an €8m (£6.7m) profit in the same quarter last year.

The company achieved sales of €1.3bn, down 16% year on year and 19% on the previous quarter.

Bert Nordberg, president and chief executive of Sony Ericsson, said: "Our fourth quarter results reflected intense competition, unfavourable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter."

Sony's acquisition of Ericsson's stake in the business is expected to close in the coming weeks and be followed by a new brand positioning supported by marketing campaigns for new products.

Sony Ericsson recently hired global branding consultancy The Gild to assist with "brand strategy, architecture and guidelines" as it evolves its Xperia smartphone brand and makes the transition to being completely owned by Sony.

Sony Ericsson is in the midst of shifting its business from feature phones to smartphones and says its Android-based smartphone sales in the quarter increased by 65% year on year.

In the US, the mobile firm recently unveiled the Xperia Ion for the AT&T network, which will be the first Sony-branded phone that doesn’t carry the Ericsson name.

The Xperia portfolio, including the recently announced Xperia NXT series, will be the cornerstone of the brand’s smartphone lineup in 2012. 

Related News

How retailers can use robots to improve customer experience
20/02/2017 - 09:54
As the Internet of Things (IoT) becomes more prevalent throughout the retail industry, some of the more sophisticated and intelligent “things” retailers are connecting to the Internet are robots.

Can lagging luxury brands stage a comeback in 2017?
17/02/2017 - 15:46
Department stores’ woes have captured the headlines, but unfortunately, they’re not the only ones on the sea of troubles.

4 Ways to reach the millennial audience
17/02/2017 - 15:11
Aerosoles’ latest digital experience reaches out to their target millennial audience — a market that expects fresh and exciting content from their brands.

Retail surgery: What’s next for multichannel retailers?
17/02/2017 - 10:04
Today’s multichannel retailers need to embrace integrated marketing technologies in order to have a single view of their customers and their shopping journeys across both physical and digital touchpoints.

11 Valentine’s Day retail strategies you can easily implement
14/02/2017 - 17:16
You don’t have to be in flowers or gifts industry to show your Valentine’s Day spirit and spread the love. There are many things you can do around February 14 (or any day, for that matter) to show your customers and staff how much you love them.