On the smartphone market with its fierce competition and tech giants who hold a strong grip on their top positions, some players have to admit struggling efforts to remain afloat. Sony Ericsson, despite its position on the ninth place on the global smartphone market, reported massive loss in 2011.
In a recent report, Reuters detailed the situation as Sony Ericsson reported a fourth-quarter pretax loss of 247 million Euros ($317 million). A previous Reuters poll allowed analysts to publish mixed predictions ranging from a 130 million Euros loss to a 94 million Euros profit.
Geoff Blaber, leading mobile device software research teams from CCS Insight, explains the situation: “Volume and profitability at Sony Ericsson are both considerably worse than expected, illustrating not only the intense competitive environment, but the huge challenge facing Sony as it embraces the mobile business.”
The loss othat the joint venture supported forced Ericsson to take a serious hit, meaning 1.1 billion crowns ($160 million) loss to its operating income in the fourth quarter. Japanese side of the joint venture, Sony Corp that counts $85 billion in annual sales will probably take full control in the following months.