Sony Ericsson has just posted their Q2 results and things aren't looking very pretty. The company has been struck pretty hard by the Japan crisis, which has disrupted its supply chains and has led to a loss of 50 million. This puts an end to the streak of five consecutive winning quarters that the company recorded.
The good news is that the effect was felt most strongly at the start of Q2, with things getting notably better towards the end. This means that everything should be fine in Q3 and Sony Ericsson should be back in the black when the next report comes out.
For the three months ending in June Sony Ericsson managed to ship 7.6 million handsets, which is 31% lower than the 11 million sold in for same period of last year. However, the number of Android-running smartphones shipped by Sony Ericsson has increased by 150% so it's mostly feature phones, where the company is losing ground. In fact smartphones now account for 70% of the Sony Ericsson sales, so the company's new policy is obviously getting good results.
Except for the 50 of loss, that is. Strangely enough though, the revenue has increased in comparison to the first quarter of this year (1,193 million vs 1,145 million) and Sony Ericsson recorded a profit of 11 million then.
Anyway, given the force majeure circumstances that Sony Ericsson was forced to deal with, it can easily be forgiven for the slip-up. However, it would be vital that the company records some profit in Q3 or investors might rightfully start to worry.