According to Sony Ericsson’s quarterly report, the company’s third quarter sales fell very slightly from EUR 1.6 billion (a year ago) to EUR 1.59 billion (US$2.19 billion). The company shipped 9.5 million phones during the quarter, as a result a 9% decrease year-on-year due to a decline in feature phone shipments, partially offset by an increase in smartphone shipments. A higher volume of smartphones shipment leads a 25% quarter-on-quarter increase.
Well, the average selling price increased to EUR166 (US$228) from EUR154, this year-on-year increase was due to the shift to smartphones and geographic mix instade a negative effect from foreign exchange rates. However the Sony Ericsson posted a zero profit figure as compared to a net profit of EUR49 million a year ago, by the way it’s an improvement on the loss of EUR50 million in the 2nd quarter of this year.
Cash flow from operating activities during the quarter was EUR 53 million, while external borrowings of EUR 51 million were repaid during the quarter, resulting in total borrowings of EUR 718 million at the end of the quarter. Total cash balances is united to EUR 466 million at end September 30, 2011. Sony Ericsson has reported that, its share of the global Android-based smartphone market was approximately 12% in volume and 11% in value during the quarter. The Sony Ericsson also maintained its forecast for modest industry growth in total units in the global handset market for 2011.