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

MTN to hand over retail stores to Brightstar?
02/04/2015 - 10:50
MTN Group is believed to have struck a deal with Brightstar Corp, a US based distributor of mobile phones and other devices, to outsource its retail outlets in South Africa.

Wal-Mart moves to grow market share
02/04/2015 - 10:40
Boston - Wal-Mart Stores expects to be in heavy investment mode for the next 18 to 24 months as the company improves the way it handles inventory and outfits more locations with in-store pickup for online orders.

Heinz-Kraft deal: The stories behind the brands
27/03/2015 - 08:12
New York - The combination of HJ Heinz and Kraft Foods Group Inc. will bring many of America's oldest and best-known brands under the same corporate roof. Here's a look at the history behind some of those products:

Clover looks for new pastures and fast-growing economies in Africa
27/03/2015 - 08:03
DAIRY group Clover Industries will wrap up talks with potential partners in the next few months as it seeks to expand into faster-growing economies in the rest of Africa.

Edgars Zim records profit growth
23/03/2015 - 08:10
Harare - Edgars Stores Limited, the Zimbabwean clothing retailer owned 38.28% by South Africa’s Edgars Consolidated Stores (Edcon), reported improved results for the year ended January 10 2015.