Sony Ericsson To Focus Only On Smartphones

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.

SOny Ericsson Xperia Arc

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.

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