Sony Ericsson slips into the red ahead of rebrand
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.
Nespresso shifts focus from exclusivity to sustainability
13/10/2017 - 08:51
In an effort to shed light on its sustainability efforts, Nespresso is shifting away from its signature star-studded spots to a new ad campaign focused on the farmers and communities that are the backbone of the brand.
Do independent retailers need a marketing plan?
10/10/2017 - 17:06
Many independent retailers have never considered a marketing plan unless they had to file for an SBA loan.
Embracing retail’s digital transformation - A how to guide
06/10/2017 - 08:36
We live in a digital age where consumers are increasingly relying on the Internet and mobile devices for everything from paying bills to entertainment.
Amarula removes elephant from logo
03/10/2017 - 13:32
Amarula has removed the elephant in their logo as part of raising awareness against ivory trade and saving the vulnerable African elephant from extinction.
8 Mistakes to avoid to master personalisation
03/10/2017 - 11:47
Why do so many retail websites still fail to establish a personal relationship with their shoppers? Clearly, something is holding marketers back from delivering the relevant, timely, highly-personalised web experiences that shoppers really want.