Sony Ericsson has announced its third quarter profits and also revealed that next year will see it focus all its efforts on the smartphone market.
Last week we heard rumours that Sony was planning on buying out Ericsson’s 50 per cent stake in the joint venture, but at the earnings call this morning, CEO of Sony Ericsson, Bert Nordberg, declined to comment on the rumour.
In recent times Sony Ericsson has been losing money on its smartphone efforts but the latest set of figures show a pretax profit of €31 million which was ahead of analysts predictions.
The company reported that it had sold 9.5million handsets in the last quarter which again was ahead of expectations however analysts believe that Apple would have sold around 20 million handsets over the same period.
Revenues rose by 33 per cent compared to the previous quarter, to €1.59 billion with analysts expecting a lower overall total.
Sony Ericsson announced that since launching the Xperia range of phones, a total of 22 million units have been sold and while the company has been struggling to match Samsung and Apple in smartphone terms, the Xperia Arc, Xperia Ray and the PlayStation-certified Xperia Play have all helped boost its smartphone credentials.
The potential move by Sony to create a smartphone arm of its company would seem to make a lot of sense, with the Japanese giant able to combine its smartphone offerings with its extensive entertainment content.
With the smartphone segment set to grow by 50 per cent in the coming year, all manufacturers will want to grab as big a slice of the pie as they can, and Sony Ericsson will need to get its house in order if it is to take advantage of such growth.