Sony Ericsson reports fourth quarter and full year 2010 results

Sony Ericsson reports fourth quarter and full year 2010 results:

Highlights:

 Four consecutive quarters of profitability during 2010
 Improvement of Euro 1.1 billion of income before taxes, excluding restructuring charges, for the full year
 Over 9 million Android-based Xperia™ phones shipped since launch

Bert Nordberg, President & CEO of Sony Ericsson commented, “2010 was a turnaround year for Sony Ericsson. Our four consecutive quarters of profit reflect the success of our shift towards an Android-based smartphone portfolio. We will celebrate the 10th anniversary of the creation of Sony Ericsson in 2011, and as shown by the recently announced Xperia™ arc, we will continue to focus on delivering the most entertaining smartphones worldwide.”

Income before taxes, excluding restructuring charges, was Euro 189 million for the full year 2010, compared with a loss of Euro 878 million in 2009. The improvement of approximately Euro 1.1 billion was driven by the success of a streamlined product portfolio focused on higher-end smartphones and an improved cost structure. Sales for the full year 2010 were Euro 6,294 million, a decrease of 7% from 2009, while gross margin improved from 15% in 2009 to 29%, in 2010.

During 2010 Sony Ericsson completed its company-wide transformation programme, improving its cost of sales ratio, reducing its global workforce by approximately 4,000 people in total, consolidating its facilities worldwide and decreasing annual operating expenses by more than Euro 880 million. The total restructuring charges for the transformation programme were Euro 381 million.

Units shipped during the fourth quarter were 11.2 million, a year-on-year decrease of 23%, consistent with the streamlining of the portfolio to focus on higher-end smartphones. The sequential increase of 8%, related to seasonal factors, was somewhat constrained by a lack of new product launches during the quarter.

Average selling price (ASP) for the quarter was Euro 136, a 13% increase year-on-year. ASP decreased 12% sequentially, mainly due to price erosion, foreign exchange and product mix. Sales for the quarter were Euro 1,528 million, a decrease of 13% year-on-year and a decrease of 5% sequentially.

The gross margin for the fourth quarter was 30%, an increase of 7 percentage points year-onyear and essentially flat sequentially, including the benefit of some one-time items, relating to certain royalty matters and warranty estimates.

For complete results download PDF: http://www.sony.net/SonyInfo/IR/library/semc/pdf/q410.pdf

Introducing Xperia Play the worlds first playstation certified smartphone

XperiaTM PLAY combines a PlayStation-quality gaming experience with the very latest Android smartphone technology. Super fast graphics and dedicated game controls deliver the ultimate smartphone gaming experience from March 2011 Sony Computer Entertainment and leading game publishers provide top titles from launch –available to download from the AndroidTM Market.

Sony Ericsson announced the game changing XperiaTM PLAY, the latest phone in its XperiaTM range of Android based smartphones. XperiaTM PLAY delivers the smartphone functionality that the most serious power users could need, teamed with the immersive gaming experience that any gamer would want.

In portrait mode, the Android smartphone offers all the benefits that users have come to expect from Sony Ericsson’s existing range of XperiaTM smartphones with best-in-class entertainment experiences, a great 5 megapixel camera, a brilliant 4” multi-touch screen and great social networking features.

However, slide out the gaming control and users enter a new world of immersive mobile gaming. The slide out game pad reveals a digital D pad, two analogue touch pads, two shoulder buttons and the four PlayStation icons: circle, cross, square and triangle. Qualcomm’s optimized Snapdragon processor with a 1Ghz CPU and embedded Adreno GPU graphics processor deliver silky smooth 60fps play-back 3D mobile gaming and Web browsing with minimal power consumption so Xperia PLAY users can enjoy long hours of battery life and game time.

Rikko Sakaguchi, Executive Vice President and Chief Creation Officer at Sony Ericsson commented: “Today is a very proud moment for Sony Ericsson as we bring something truly revolutionary to the market. Living up to our vision of Communication Entertainment, Xperia PLAY will forever change the way people think about smartphones and mobile gaming.

XperiaTM PLAY will run on Gingerbread (version 2.3), the latest version of Google’s AndroidTM platform. The XperiaTM PLAY will also be the first PlayStation Certified device. This means it will have access to PlayStation® game content provided through the PlayStation® Suite initiative, currently under development by Sony Computer Entertainment and due to launch later this calendar year.

Kazuo Hirai, President of Networked Products and Services Group at Sony Corporation said: “I am delighted to see Xperia PLAY as the first PlayStation Certified smartphone to hit the market. Xperia PLAY provides a unique consumer offering and is yet another example of great products and services coming to market that leverage Sony’s strong assets.”

Sony Ericsson has partnered with key publishers in the gaming industry to deliver a rich, vibrant ecosystem at launch and post launch with many leading new titles available via the AndroidTM Marketplace. Leading franchises coming to Xperia™ PLAY includes EA’s Need For Speed, Sims 3 and a world-first multiplayer version of FIFA 10 for mobile. GLU Mobile/Activision will be bringing Guitar Hero while Gameloft’s titles include Assassin’s Creed and Splinter Cell. Sony Ericsson is also partnering with Unity Technologies, using its award-winning development platform, to ensure a continuous flow of high quality 3D game titles.

Mr Sakaguchi continued: “The launch of Xperia PLAY could not have been possible without the close collaboration of both Google and Sony Computer Entertainment. The commitment of so many industry leading game publishers further demonstrates that Xperia PLAY will deliver on the long-held expectations from consumers the world over.”

XperiaTM PLAY and PlayStation Certified gaming are great examples of the kind of innovation that’s possible in the open Android ecosystem,” said Andy Rubin, Vice President of Engineering at Google. A pre-loaded application will enable users to easily discover and download titles that have been optimised for game play on Xperia PLAY, access recently played games and see information about the games they have downloaded. Sony Ericsson Xperia™ PLAY will be available globally in selected markets from March 2011.

Xperia™ PLAY at a glance Sony Ericsson Xperia™ PLAY

Camera

  • 5.1 megapixel camera,
  • Auto focus,
  • Flash / Photo light,
  • Geo tagging,
  • Image stabiliser,
  • Send to web,
  • Touch focus,
  • Video light,
  • Video recording,
  • Video blogging

Music

  • Album art,
  • Bluetooth™ stereo (A2DP),
  • Google™ Music Player,
  • Music tones (MP3/AAC),
  • PlayNow™ service*,
  • Sony Ericsson Music player,
  • Stereo speakers,
  • TrackID™ music recognition application

Internet

  • Android Market™*,
  • Bookmarks,
  • Google™ search*,
  • Google™ Voice Search*,
  • Pan & zoom,
  • Web browser (Webkit),

Communication

  • Call list,
  • Conference calls,
  • Facebook™ application (from Android Market™),
  • Google™ Talk*,
  • Noise Shield,
  • Polyphonic ringtones,
  • Speakerphone,
  • Sony Ericsson Timescape™***,
  • Twitter™ application (from Android Market™),
  • Vibrating alert,

Messaging

  • Android Cloud to Device messaging (C2DM),
  • Conversations,
  • Email,
  • Google Mail™*,
  • Instant messaging,
  • Picture messaging (MMS),
  • Predictive text input,
  • Sound recorder,
  • Text messaging (SMS)

Design

  • Auto rotate,
  • Keyboard (onscreen, 12 key),
  • Keyboard (onscreen, QWERTY),
  • Picture wallpaper,
  • Touchscreen,
  • Wallpaper animation

Entertainment

  • 3D games,
  • Dedicated gaming keys,
  • Flash Lite™,
  • Gesture gaming,
  • Motion gaming,
  • Video streaming,
  • YouTube™,

Organiser

  • Alarm clock,
  • Calculator,
  • Calendar,
  • Document editors,
  • Document readers,
  • E-Manual,
  • Flight mode,
  • Google Calendar™,
  • Google Gallery 3D™,
  • Infinite button,
  • Phone book,
  • Set-up Wizard,
  • Widget manager,

Connectivity

  • 3.5 mm audio jack,
  • aGPS,
  • Bluetooth™ technology,
  • DLNA Certified,
  • Google Latitude™,
  • Google Location Service,
  • Google Maps™ with Street View,
  • Media Transfer Protocol support,
  • Micro USB Connector,
  • Modem,
  • Synchronisation via Facebook™**,
  • Synchronisation via Google Sync™,
  • Synchronisation via Microsoft Exchange ActiveSync®,
  • Synchronisation via Sony Ericsson Sync,
  • USB 2.0 high speed support,
  • Wi-Fi™,
  • Wi-Fi™ Hotspot functionality The service is not available in all markets.

Screen

  • 16,777,216 colour TFT,
  • Capacitive multi-touch,
  • 4 inches,
  • 480 x 854 pixels (FWVGA)

Accessories

In-Box:
Xperia™ PLAY
Battery
Stereo portable handsfree
8GB microSD™ memory card
Charger
Micro USB cable for charging, synchronisation and file transfer
User documentation

Facts

Size: 119 x 62 x 16 mm
Weight: 175 grams
Phone memory: 400 MB
Memory card support: microSD™, up to 32 GB
Memory card included: 8GB microSD™
Operating system: Google™ Android 2.3 (Gingerbread)
Processor: 1 GHz Scorpion ARMv7
Talk time and networks

Networks
Talk time GSM/GPRS: Up to 8 hrs 25 min*
Standby time GSM/GPRS: Up to 425 hrs*
Talk time UMTS: Up to 6 hrs 25 min*
Standby time UMTS: Up to 413 hrs*
Talk time CDMA2000®: Up to 7 hrs 40 min*
Standby time CDMA2000®: Up to 405 hrs*
Game play time: Up to 5 hrs 35 min*
MP3 playback: Up to 30 hrs 35 min*
Networks
UMTS HSPA 800, 850, 1900, 2100
GSM GPRS/EDGE 850, 900, 1800, 1900
UMTS HSPA 900, 2100
GSM GPRS/EDGE 850, 900, 1800, 1900
CDMA2000®, cdmaOne, EVDO

Colour

Black
White

Source: Sony Ericsson

Sony Ericsson reports second quarter 2010

16 July 2010

Q2 Highlights:

Income before taxes excl. restructuring charges increases to Euro 63 million
Positive cash flow generated from operating activities
ASP rises to Euro 160
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the second quarter ended June 30, 2010 is as follows:

   Q2 2009   Q1 2010   Q2 2010
Number of units shipped (million) 13.8 10.5 11.0
Sales (Euro m.) 1,684 1,405 1,757
Gross margin (%) 12% 31% 28%
Operating income (Euro m.)  -274 20 36
Operating margin (%) -16% 1% 2%
Restructuring charges (Euro m.) 1 3 32
Operating income excl. restructuring charges (Euro m.) -274 23 68
Operating margin excl. restructuring charges (%) -16% 2% 4%
Income before taxes (IBT) (Euro m.) -283 18 31
IBT excl. restructuring charges (Euro m.) -283 21 63
Net income (Euro m.) -213 21 12
       
Average selling price (Euro) 122 134 160

Bert Nordberg, President, Sony Ericsson commented, “Our second quarter results show that the company continued the momentum seen in the first quarter as a result of our focus on the value market and the success of new smartphones; Xperia™ X10 and Vivaz™, launched during the first quarter. These models, along with the Xperia™ X10 mini and Xperia™ X10 mini pro which started shipping at the end of the second quarter, have been well received by operators and we are now well positioned for long term growth.”

Sales for the quarter were Euro 1,757 million, a 25% increase sequentially and a 4% increase year-on-year. Units shipped in the quarter were 11 million, a 5% increase sequentially and a 20% decrease year-on- year due to the reduction in size of the product portfolio. Average selling price (ASP) increased 19% sequentially and 31% year-on-year to Euro 160 during the quarter due to improved product and geographical mix, as well as positive currency effects.

Income before taxes for the quarter excluding restructuring charges was a profit of Euro 63 million, illustrating the positive impact of the cost reduction programme and favourable product mix.

The transformation programme, which started in mid-2008 is now in its final stages and on target to reduce annual operating expenses by Euro 880 million by the end of the year. Since the start of the program Sony Ericsson has reduced its global workforce by approximately 4,000 people to reach a total workforce of approximately 7,800 by June 30, 2010. The total restructuring charges taken to date for the programme are Euro 374 million.

As of June 30, 2010 Sony Ericsson retained a net cash position of Euro 609 million, an increase of Euro 46 million sequentially mainly due to operating results, tight financial management of working capital, as well as positive currency effects.

Market share in unit base for the quarter remained flat and is estimated to be around 4%.
Sony Ericsson maintains a forecast of slight growth in units in the global handset market in 2010.

The liquid identity is a registered trademark of Sony Ericsson Mobile Communications AB.
Vivaz™ and XPERIA™ are trademarks of Sony Ericsson Mobile Communications AB.
Sony is a registered trademark of Sony Corporation. Ericsson is a registered trademark of Telefonaktiebolaget LM Ericsson.
Any rights not expressly granted herein are reserved and subject to change without prior notice.

Source: Sony Ericsson

Xperia™ X10 Specification

xparia X10

Addicted to friends – Timescape™ Weaving your social web? With Sony Ericsson Timescape™, you have Facebook™, Twitter, your messages, all your mates – in one place.
Fun to the core – Mediascape
Wanna quench your thirst for fun? Take a sip of Sony Ericsson Mediascape – all your music, videos and photos, just waiting to be enjoyed.
Seen that face before?
Xperia™ X10 recognizes up to five faces in a photo and automatically stores them under your friends in your phone.

Screen
– 480 x 854 pixels WVGA
16,536 color TFT touchscreen

Memory
– Phone memory 1GB
– SanDisk microSD™ up to 16GB, 8GB included

* Actual free memory may vary due to phone pre-configuration.

Networks
– GSM/GPRS/EDGE 850/900/1800/1900
– UMTS/HSPA 900/1700/2100

Available colours
– Sensuous Black – Luster White
Possible limited market availability.

Sizes
– 119.0 x 63.0 x 13.0 mm
– 4.7 x 2.5 x 0.5 inches
Weight
– 135.0 gr
– 4.8 oz

Please note that local variations may apply.

Camera
Camera – 8.1 megapixel
Digital Zoom – up to 16x
Auto focus
Face recognition
Image stabiliser
Flash / light type – Photo light
Send to web
Video recording
Video light
Geo tagging
Smile detection
Entertainment
Media
3D games
YouTube™
Video streaming
Video viewing
Sony Ericsson Mediascape
Communication
Speakerphone
Vibrating Alert
Sony Ericsson Timescape™

Music
TrackID™
Media Player
Album art
Bluetooth™ stereo (A2DP)
PlayNow™
Music tones – MP3, AAC
Connectivity
aGPS
Google Maps™
Bluetooth™ technology
Synchronisation
USB support
WiFi™
Design
Auto rotate
Gesture Control
Picture wallpaper
Internet
Web feeds
Web browser – WebKit
Messaging
Email
Exchange ActiveSync®
Text messaging (SMS)
Picture messaging (MMS)
Predictive text input
Organiser
Touchscreen
Alarm clock
Calendar
Calculator
Flight mode
Phone book
Infinite button

Sony Ericsson XPERIA™ X10 introduces an open and integrated world of social media, communication and entertinment

XPERIA™ X10 is the flagship phone in a family of phones coming to market during the first half of 2010. The XPERIA™ X10 will be available in Q1 2010
New UX (user experience) platform lets consumers organise everything and discover more with the most open, human and intuitive user experience yet
London – November 3 2009 – Sony Ericsson today unveils the XPERIA™ X10, the first phone in a family of phones to deliver a consistent user experience where communication truly becomes entertainment. Building on Sony Ericsson’s entertainment heritage and combining rich graphics with intelligence capabilities, the XPERIA™ X10 introduces a new UX platform that will evolve across the product portfolio and expand over time continuously introducing new features and capabilities.

The UX platform builds on top of the Open OS and creates a unique Sony Ericsson user experience by combining best-in-class entertainment features with signature applications, unrivalled integration of social media services and a rich graphical user interface. The XPERIA™ X10 is the first mobile phone to truly humanise the way people interact with their phones.

Bert Nordberg, President, Sony Ericsson said, “The XPERIA™ X10 and the family of phones launching in the first half of 2010 underpin our commitment to an open and multi-platform strategy that maximises choice for the consumer and delivers the best possible consumer experience. The reaction from our global operator partners to the XPERIA X10 has been extremely positive and we will be rolling out across the world including Japan from the first half of 2010.”

Rikko Sakaguchi, EVP and Chief Creation Officer, Sony Ericsson said, “The XPERIA™ X10 is a fantastic example of our make.believe philosophy because we are pushing the boundaries of what is possible and demonstrating that anything consumers can imagine, we can make possible. With the X10, we are raising the bar we have set ourselves with entertainment-rich phones like Aino and Satio by making communication more fun and playful, multiplying and enriching opportunities to connect.”

Introducing signature applications like Mediascape and Timescape™, the XPERIA™ X10 lets consumers organise everything in their phone in an intuitive way:

Sony Ericsson Timescape™ manages all your communication with one person in one place. Browse through your conversations the bright way to check out your Facebook™, Twitter™, photos, emails, and texts all in one go
Sony Ericsson Mediascape is the smart way to get all the music, photos and videos you want from your favourite friends and artists. It accesses content from everywhere – your phone, YouTube™, PlayNow™ – and presents everything for you
Intelligence capabilities, integrated into Mediascape and Timescape™, can automatically recognise connections between contacts, content and media. By recommending alternative ways to communicate or guiding to new media experiences, consumers can discover more in a truly open way. For example:

Pressing the new “infinite button” guides you through the connected world, aggregating all your interactions with one person into one view
Intelligent face recognition features recognise up to five faces in any picture, automatically connecting them with your social phonebook and all other related communications with that person.
Sony Ericsson’s open approach gives consumers maximum choice and with the XPERIA™ X10, users can download any application that they want direct from a wide variety of stores including PlayNow™ and the Android Market™, co-creating an experience that is entirely unique to them.

Sony Ericsson is also introducing the new Hi-Fi Wireless Headset with FM radio MW600. Featuring advanced Bluetooth™ technology and a built-in FM radio, Hi-Fi Wireless Headset with FM radio MW600 lets you stream music to your headset in high fidelity through sound-enhancing ear-buds. With a crystal clear OLED display, easy access controls and RDS radio station information, you don’t even need to take your phone with you to tune in to your favourite radio station.

The XPERIA™ X10 supports GSM GPRS/EDGE 850/900/1800/1900, UMTS HSPA 900/1700/2100 and UMTS HSPA 800/850/1900/2100

The XPERIA™ X10 will be available in selected markets from Q1 in the colours Sensuous Black and Luster White.

Log on to The Sony Ericsson Product Blog for more information: http://blogs.sonyericsson.com/products

The Sony Ericsson XPERIA™ X10 at a glance

Camera

8.1 megapixel camera
Up to 16x digital zoom
Auto focus
Intelligent face recognition features
Geo tagging
Image and video stabilizer
Photo and video light
Send to web (photo and video upload)
Smile detection
Touch focus
Video recording
Recent shot tray
Music

Album art
Bluetooth™ stereo (A2DP)
Media player
Music tones (MP3/AAC)
PlayNow™
TrackID™
Web

Bookmarks
Google™ search (from standby)
Web feeds
WebKit web browser
Communication

Sony Ericsson Timescape™
Speakerphone
Vibrating alert
Messaging

Conversations
Email
Microsoft Exchange ActiveSync®
Picture messaging (MMS)
Predictive text input
Text messaging (SMS)
Design

Auto rotate
Gesture control
Picture wallpaper
Touchscreen
Entertainment

3D games
Media browser
Infinite button
Video streaming
Video viewing
YouTube™
Organiser

Alarm clock
Calculator
Calendar
Flight mode
Infinite button
Office suite
Phone book with dialer
World clock
Location-based services

A-GPS
Google Maps™
Wisepilot™ turn-by-turn navigation* (free trial version)
*The service may not be available in every market. For more information, go to www.sonyericsson.wisepilot.com
Connectivity

3.5 mm audio jack
Bluetooth™ technology
Micro USB connector
Synchronisation
USB support
Wi-Fi™
Preloaded applications

Sony Ericsson Timescape™
Sony Ericsson Mediascape
Sony Ericsson Home with clock widget
Sony Ericsson Sync
Android Market™ Client
Gmail™
Google Calendar™
Google Maps™ with Street View
Google Media Uploader
Google phone-top search
Google search widget
Google Talk™
Google Voice Search™
Network Location Provider
Set-up Wizard
YouTube™
Screen

262,144 colour TFT touchscreen
4.0 inches
480 x 854 pixels (WVGA)
Scratch-resistant
Accessories
In-Box:

XPERIA™ X10
Battery
Stereo portable handsfree
8 GB microSD™ card
Micro USB cable for charging, synchronisation and file transfer
User documentation
Optional:

Hi-Fi Wireless Headset with FM Radio MW600
Car Charger AN300
Screen Protector ET902
Facts 1)2)

Size: 119 x 63 x 13 mm
Weight: 135 grams
Phone memory: Up to 1 GB
Memory card support: microSD™
Memory card included: 8 GB
Operating system: Google™ Android Donut, version 1.6
Processor: 1GHz Qualcomm Snapdragon™ QSD8250
Availability and versions

Networks
UMTS HSPA 900/1700/2100
GSM GPRS/EDGE 850/900/1800/1900
UMTS HSPA 800/1900/2100
GSM GPRS/EDGE 850/900/1800/1900
Available in selected markets in Q1 2010
Colour

Sensuous Black
Luster White
Legal

Facts and features may vary depending on local variant
Operational times are affected by network preferences, type of SIM card, connected accessories and various activities e.g. playing games. Kit contents and colour options may differ from market to market. The full range of accessories may not be available in every market.
© Sony Ericsson Mobile Communications AB, 2009.

The Liquid Identity logo, XPERIA, PlayNow and TrackID are trademarks or registered trademarks of Sony Ericsson Mobile Communications AB. Sony is a trademark or registered trademark of Sony Corporation. Ericsson is the trademark or registered trademark of Telefonaktiebolaget LM Ericsson. Additional information regarding trademarks may be located on our website at: www.sonyericsson.com/cws/common/legal/disclaimer.

Other product and company names mentioned herein may be the trademarks of their respective owners. Any rights not expressly granted herein are reserved. All terms are subject to change without prior notice.

Sony Ericsson is a 50/50 joint venture by Sony and Ericsson established in October 2001, with global corporate functions located in London and operations in major markets around the world. Sony Ericsson’s strategy is to become the industry leader in mobile Communication Entertainment, through new styles of interaction across the internet and social media. Sony Ericsson offers exciting consumer experiences through innovative and feature rich phones, accessories, content and applications.

Sony Ericsson brings refreshed brand to Qatar to kick off the 2009 Sony Ericsson

Sony Erirealigned brand, showcasing the interactive, playful and innovative spiricsson continues to roll out its t underpinning its commitment to the make.believe philosophy

Following Sony Ericsson’s brand re-launch in September, the first refresh in three years, the company today brings its new identity to the Sony Ericsson Championships, Doha 2009 – the first outing for the refreshed brand at a major, global event. The prestigious, season-ending tennis tournament to the 2009 Sony Ericsson Women’s Tennis Association Tour sees the top eight female, singles players and top four female, doubles teams fight it out to be crowned with the sought-after Championships title and a share of the record USD $4.55 million prize fund.

This is the second time the Championships have come to Doha, but the first time Sony Ericsson’s new brand identity has been used at a global event. The Championships embody the dynamic, exciting and colourful new brand and is the perfect platform to demonstrate the newly adopted ‘make.believe’ brand message instigated and used by Sony and its group of companies. ‘make.believe’ represents a coming together of communication and entertainment, standing for creativity and the ability to make dreams possible. The ‘make.believe’ strap line is used in all consumer communication in order to reinforce Sony Ericsson’s entertainment credentials and collaboration with the Sony Group.

“Our new brand and values of innovation, energy and openness demonstrate our continuing commitment to transformation and the ongoing move towards a more playful and open culture” said Lennard Hoornik, head of global marketing, Sony Ericsson. “The 2009 Sony Ericsson Championships is a perfect platform to showcase our new brand values and philosophy to our consumers.”

Throughout 2009, Sony Ericsson has continued to ‘make.believe’ through a series of spectacular stunts to celebrate various tournaments such as Traffic Tennis for the Sony Ericsson Open in Miami, Underground Tennis at the Madrid Open and Street Tennis at the Rogers Cup in Toronto.

Legal
© Sony Ericsson Mobile Communications AB, 2009.
The liquid identity and liquid energy are trademarks or registered trademarks of Sony Ericsson Mobile Communications AB. “SONY” and “make.believe” are trademarks of Sony Corporation.
Ericsson is the trademark or registered trademark of Telefonaktiebolaget LM Ericsson.

About Sony Ericsson
Sony Ericsson is a 50:50 joint venture by Sony and Ericsson established in October 2001, with global corporate functions located in London and operations in all major markets. Our vision is to become the industry leader in Communication Entertainment; where new styles of communicating through the internet and social media, become entertainment. Sony Ericsson offers exciting consumer experiences through phones, accessories, content and applications.

Sony Ericsson reports third quarter results

Q3 highlights:

Decline in global handset market slowing down
Positive trend from continuing transformation programme
External financing arranged
Refreshed brand in time for Aino™ and Satio™ launch in Q4
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2009 is as follows:

Q3 2008

  Q2 2009

  Q3 2009

Number of units shipped (million)

25.7

13.8

14.1

Sales (Euro m.)

2,808

1,684

1,619

Gross margin (%)

22%

12%

16%

Operating income (Euro m.) 

-33

-274

-193

Operating margin (%)

-1%

-16%

-12%

Restructuring charges (Euro m.)

35

1

2

Operating income excl. restructuring charges (Euro m.)

2

-274

-191

Operating margin excl. restructuring charges (%)

0%

-16%

-12%

Income before taxes (IBT) (Euro m.)

-23

-283

-199

IBT excl. restructuring charges (Euro m.)

12

-283

-198

Net income (Euro m.)

-25

-213

-164

 

 

 

 

Average selling price (Euro)

109

122

114

Units shipped in the quarter were 14.1 million, an increase of 2% quarter-on-quarter and a decrease of 45% year-on-year. Sales for the quarter were Euro 1,619 million, a sequential decrease of 4% and a year-on-year decrease of 42%. The sequential decline in ASP (Average Selling Price) was due to product mix and continued challenging market conditions.

Gross margin improved sequentially but dropped year-on-year due to lower sales and foreign exchange fluctuations. The sequential improvement was seen in both percentage rate and volume, driven by cost savings actions and successful sales of the W995 Walkman® phone.

Income before taxes for the quarter, excluding restructuring charges, was a loss of Euro 198 million compared to a loss of Euro 283 million from the previous quarter. The reduced loss was due to better gross margin, as well as reduced operating expenses.

“Our business in the third quarter started to show the effects of our ongoing transformation programme. Having refreshed our brand we are now better positioned to support the launch of new products such as Aino™ and Satio™ in Q4 2009. We have cleared channel inventories, and have continued to realign internal resources and improve efficiency. We have also arranged external financing to strengthen the company’s financial position,” said Dick Komiyama, outgoing President, Sony Ericsson. “Transforming the business for future growth and returning Sony Ericsson to profitability is the focus of the senior management team and will continue under the new leadership.”

As of September 30, 2009, Sony Ericsson had a net cash position of Euro 841 million.

Since the beginning of the quarter, facilities of Euro 455 million were signed to strengthen the balance sheet and improve liquidity. Euro 155 million were drawn by the end of September and Euro 100 million were drawn in the beginning of October. In addition, a two-year committed back-up facility of Euro 200 million is available but has not been utilized. The parent companies have guaranteed Euro 350 million of these facilities on a 50/50 basis.

Programmes started since mid 2008 to reduce annual operating expenses by Euro 880 million are continuing, with the full benefit expected during the second half of 2010. The total restructuring charges for these programmes are estimated to be well within the previously announced Euro 500 million.

As of October 15, 2009; Sir Howard Stringer, Chairman, CEO and President of Sony Corporation and a member of the Sony Ericsson board, became Chairman of the Sony Ericsson board succeeding Carl-Henric Svanberg. At the same time, Bert Nordberg became President of Sony Ericsson succeeding Dick Komiyama, who remains as Executive Advisor until the end of 2009.

Sony Ericsson forecasts that the global handset market for 2009 will contract by approximately 10% from around 1,190 million units in 2008. Sony Ericsson estimates that its market share in units was about 5% in the third quarter.

The liquid identity is a registered trademark of Sony Ericsson Mobile Communications AB.
Satio™ and Aino™ are trademarks or registered trademarks of Sony Ericsson Mobile Communications AB.
WALKMAN® is a trademark of Sony Corporation.
Sony is a registered trademark of Sony Corporation. Ericsson is a registered trademark of Telefonaktiebolaget LM Ericsson.
Any rights not expressly granted herein are reserved. Subject to change without prior notice.

A live webcast of the conference call will be available on October 16, 2009 at the following times:

TIMING
14:00 UK time (BST)
15:00 Central European time (CET)
09:00 US Eastern time (EDT)
22:00 Japan time (JST)

WEBCAST:
A live webcast of the conference call will be available at: http://www.ericsson.com/ericsson/investors/
Or please click here to join the webcast directly:
http://www.thomson-webcast.net/uk/dispatching/?event_id=191bc04e8408cb47571b7b46c700aca4&portal_id=ccec29148a44ec4b8077c845c5b4cbba
The archived webcast will be available approximately one hour after the completion of the conference call.

CALL-IN NUMBERS:
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US: +1 718 354 1385
Japan: +81 3 3570 8227

REPLAY:
A replay of the conference call will be available approximately two hours after the completion of the conference call until 11:00 pm UK time on October 21, 2009.
UK and Europe: +44 20 7111 1244
Sweden: +46 8 5051 3897
US: +1 347 366 9565
Japan: +81 3 5767 9615

Replay passcode: 2462154#
EDITOR’S NOTES:

Financial statements and additional information:

Financial statements:

Consolidated income statement
Consolidated income statement – isolated quarters
Consolidated balance sheet
Consolidated statement of cash flows
Consolidated statement of cash flows – isolated quarters

Additional information:

Net sales by market area by quarter

Sony Ericsson is a 50:50 joint venture by Sony and Ericsson established in October 2001, with global corporate functions located in London and operations in all major markets. Our vision is to become the industry leader in Communication Entertainment; where new styles of communicating through the internet and social media, become entertainment. Sony Ericsson offers exciting consumer experiences through phones, accessories, content and applications.

This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For a detailed description of risk factors see Sony’s and Ericsson’s filings with the US Securities and Exchange Commission, particularly each company’s latest published Annual Report on Form 20-F.

X2 Comming Soon

Sony Erricsons X2 is Comming Soon!

Sony Ericssons X2

Your way
Personalise your panels. And with the SlideView key and Windows 6.5 user interface, you have instant access to your messages, schedule, contacts and more.

Touch or keyboard?
Someone’s trying to grab your attention? Stay in touch with clients and colleagues as you like. Just use the touch display – or go for the QWERTY keyboard.

Work. Then play. Whenever.
Check out the news on CNN. Have a Skype chat. Find more friends on Facebook. View video clips on the hi-res 3.2″ screen. Work or play, you choose. Screen
– 800 x 480 pixel
– 65,536 color touchscreen

Memory
– SanDisk microSD™ / microSDHC™ (up to 16GB)
– Phone memory 110MB*

* Actual free memory may vary due to phone pre-configuration.

Networks
– GSM/GPRS/EDGE 850/900/1800/1900
– UMTS/HSPA 900/1900/2100

Available colours
– Elegant Black – Modern Silver
Possible limited market availability.

Sizes
– 110.0 x 54.0 x 16.0 mm
– 4.3 x 2.1 x 0.6 inches

Weight
– 155.0 gr

– 5.5 oz

Features

Camera

  • Camera – 8.1 megapixel
  • Digital Zoom – up to 16x
  • Geo tagging
  • Video recording
  • Video light
  • Send to web
  • Image stabiliser
  • Touch focus
  • Auto focus

Entertainment

  • Tracker
  • Video viewing
  • Video streaming
  • Java
  • YouTube™
  • Motion gaming
  • 3D games
  • Media

Communication

  • Speakerphone
  • Vibrating Alert

Music

  • Music tones – MP3, AAC
  • Windows Media® Player Mobile
  • PlayNow™
  • Stereo speakers
  • Bluetooth™ stereo (A2DP)
  • Album art
  • Media Player

Connectivity

  • WiFi™
  • USB support
  • USB mass storage
  • Synchronisation
  • Modem
  • Bluetooth™ technology
  • DLNA Certified™
  • Google Maps™
  • aGPS
  • Microsoft Office® mobile

Design

  • XPERIA™ panels
  • Wallpaper animation
  • Picture wallpaper
  • Auto rotate

Internet

  • Web browser – Internet Explorer® Mobile
  • Web feeds

Messaging

  • Predictive text input
  • Instant messaging
  • Text messaging (SMS)
  • Picture messaging (MMS)
  • Exchange ActiveSync®
  • Email

Organiser

  • Windows Mobile®
  • Timer
  • Tasks
  • Stopwatch
  • Phone book
  • Notes
  • Flight mode
  • Calendar
  • Calculator
  • Alarm clock
  • Touchscreen
  • Handwriting recognition

Great agency partnerships to support the new Sony Ericsson brand

Great agency partnerships to support the new Sony Ericsson brand

Sony Ericsson  announced how it will work with its communications agencies to help bring its new brand values to life and engage with consumers in a fun and interactive way. This follows the recent announcement of the new brand realignment, which aims to adopt a more open and questioning attitude by inviting greater consumer participation in the brand, and adoption of Sony Corporation’s make.believebrand message.

Sony Ericsson will continue to work with its global lead agencies to manage its marketing communications, digital, retail and PR activities to create exciting, opportunities to participate with our new products and services through a stronger focus on interactive digital and social media channels

The global lead agencies are Saatchi & Saatchi, Burson-Marsteller, Dare, iris Worldwide, Mediaedge:cia and McCann Eriksson.

Lennard Hoornik, Head of Marketing, Sony Ericsson said: “Following the recent announcement of our evolved brand, the first realignment in three years, and our confirmation of our company-wide mission to become the Communication Entertainment brand, we believe it will become even more important in the future for our lead agencies such as Saatchi & Saatchi to work in an integrated way. This will ensure that we will continue to provide consumers with entertaining communications and ways to openly communicate with us.”

Cathy Davies, Head of Brand & Strategy in Global Marketing, Sony Ericsson, added: “We are constantly looking at partnering with the best possible agencies, and we believe the global agencies we are collaborating with today are the strongest and most talented in their respective fields.”

A series of marketing campaigns will be unveiled in the autumn that will show the evolved visual identity, new brand values and adoption of the Sony make.believe brand message. Individual markets will introduce the realigned brand as they launch their new campaigns. The most significant global marketing campaign will support our entertainment products; Aino, Satio and Yari which will launch in Q4, starting with some exciting digital work.

As these external campaigns are rolled out, consumers will start to experience our more open and emotional feel to our communications and find new opportunities to get involved with the Sony Ericsson brand.

Legal

© Sony Ericsson Mobile Communications AB, 2009.

The liquid identity and liquid energy are trademarks or registered trademarks of Sony Ericsson Mobile Communications AB. “ SONY” and “make.believe” are trademarks of Sony Corporation.
Ericsson is the trademark or registered trademark of Telefonaktiebolaget LM Ericsson.

Sony Ericsson is a top, global industry player with sales of around 97 million phones in 2008. Diversity is one of the core strengths of the company, with operations in over 80 countries including manufacturing in China and R&D sites in China, Europe, India, Japan and North America. Sony Ericsson was established as a 50:50 joint venture by Sony and Ericsson in October 2001, with global corporate functions located in London

Sony Ericsson introduces a world first – the Motion Activated Headphones MH907

Sony Ericsson introduces a world first – the Motion Activated Headphones MH907 Escape the ordinary – listen to your favourite music and receive calls without touching a button with the Motion Activated Headphones MH907.

Sony Ericsson  unveils the world’s first ever motion activated headphones that sense the user. The clever MH907 headphones mean users simply plug in two earphones to start listening to music and pause by removing one earbud. To start listening again simply plug it back in. Do exactly the same to answer and end calls – simple as 1,2,3!

Sony Ericsson’s SensMe™ Control technology responds without a single press of a button, and with a Clear Audio experience users encounter superior sound on the move and enjoy their favourite music as it’s meant to be heard.

Sony Ericsson has created a humorous quirky film to demonstrate the product’s unique technology. Partnering with internationally renowned animator Kristofer Ström, the short film debuting today shows a cartoon character riding the bus and switching effortlessly between phone calls and listening to his favourite music. To see the film visit: www.sonyericsson.com/putyourearsincontrol

“With the MH907 consumers can pocket their phone but still stay connected all day, every day by simply plugging in or removing their earbuds – there is no need for a remote control or any buttons.” said Jacob Sten, Senior Vice President, SEMC Accessories. “At Sony Ericsson we think it is very important to listen to what our customer needs and introducing the world’s first ever motion activated headphones highlights our commitment to offer our customers a complete Communications Entertainment experience. The MH907 supports our realigned brand strategy, which aims to build a fun, playful and inclusive interaction with consumers.”

For further information visit: http://www.sonyericsson.com/putyourearsincontrol

The Sony Ericsson Motion Activated Headphones MH907 at a glance

Design
Colours: Yellow/White and Titan Chrome
Size: 164cm long
Weight: 25.32g

Compatibility
Most Sony Ericsson phones with a fast port connector
Please check compatibility at www.sonyericsson.com

Legal

1) Facts and features may vary depending on local variant.

2) Talk and standby times are affected by network preferences, type of SIM card, connected accessories and various activities e.g. games. Kit contents and colour options may differ from market to market. The full range of accessories may not be available in every market.

© Sony Ericsson Mobile Communications AB, 2009.

Sony Ericsson is a top, global industry player with sales of around 97 million phones in 2008. Diversity is one of the core strengths of the company, with operations in over 80 countries including manufacturing in China and R&D sites in China, Europe, India, Japan and North America. Sony Ericsson was established as a 50:50 joint venture by Sony and Ericsson in October 2001, with global corporate functions located in London

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