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

Six steps to successful monitoring of your customer service
14/08/2017 - 11:47
In today’s competitive environment, the quality of your customer service is an increasingly important factor in nurturing positive customer loyalty.

Solving the mystery of the non-buying consumer
14/08/2017 - 11:14
With retail and mall traffic down, it's more important than ever to improve conversion metrics, but find it difficult to understand why people visit a store without buying. These "store nonpurchasers" (SNPs) represent a huge chunk of traffic to a store — accounting for up to 50 percent of visitors, according to recent ForeSee research.

Nike celebrates visionary women with 'Air VaporMax' campaign
07/08/2017 - 16:18
Nike is celebrating a group of visionary women, the Visionairs, in its 'Air VaporMax campaign'.

How to create a customer journey map
01/08/2017 - 10:28
The output of the customer journey mapping process is the map itself – a practical and visual document that should be able to communicate a number of things.

3 key strategies for driving loyalty enrolment
01/08/2017 - 09:06
Over the past several years, loyalty programs have helped countless brands to retain customers and drive sales by rewarding returning customers for their continued patronage.