Sony Ericsson Q2 2011 negative on supply chain disruptions

Sony Ericsson, a joint venture of Sony Corporation(TYO: 6758, NYSE:SNE) and Ericsson (OMX: ERIC B, NASDAQ: ERIC) second quarter results were significantly impacted by supply chain disruptions caused by the 2011 Tōhoku earthquake, Sony Ericsson estimates that the supply chain effect was around 1.5 million units with largest effect in the beginning of the quarter.

The result of a shift to Android-based smartphones looks good thus far, over 70% of the phones sold by Sony Ericsson are now smartphones and average selling price is 156 Euro. Total sales for the quarter were a hair under 1.2 billion Euro and profit before taxes turned negative 42 million Euro. Sony Ericssons still forecasts modest industry growth in global handset market in 2011.