Sony Ericsson Posts Another Profit, BP Oil Spill Also Stops

Wow people. That is two miracles in one month. Sony Ericsson has honestly been the BP of Sony, oozing out random phones that never made much sense or were too expensive for anybody to afford. Sony itself never knew what to do with the brand name and it seemed like everybody was stuck in this awkward relationship where Sony fed them the parts and Ericsson made something. Sony Ericsson used to be a very highly profitable brand for Sony and in the world, they were a leader of the new and sexy. This all changed a little over 3 years ago when Apple introduced the iPhone. Suddenly, you either had to be a fully functional smart phone or you were oblivious to everybodys radar. But being just a smart phone isnt enough either with iOS4, Android and Palm and soon Windows Phone. This transition really caught many of the big players like RIM and Motorola and Sony Ericsson off guard. Making a phone with sleek design, high quality and great individual components like an 8MP camera is one thing, having it jump on the web, publish to Facebook and get apps is another beast. You need a platform for that and Sony didnt have one.

BP was finally able to get an cap on the huge gulf spill thats pretty much ruined the planet. Wall*E and Big & Large, here we come. Sony Ericsson seems to have made its own oil cap, Android. On Friday, during Sonys second quarter earnings call, they Sony Ericsson division was able to pull of a second profitible quarter in a row. Profit for the three months to June 30 was €12 million ($15.5 million), compared with a €213 million loss a year earlier, sustaining a turnaround that started in the first quarter, reports the WSJ. Now of course, things in some ways are only going to get tougher from here on. Apple was able to ship 3 million iPhone 4 unit so far, HP has bought Palm to drive that division and its presence in the Smart Phone Market and Microsoft will be bringing its Windows Phone series in late 2010. This all means more competition in the market but can also mean more revenue for Sony.

The one benefit that companies like Sony and HTC have is that they are not in the OS side of it. Meaning, they can make as many phones as they wish. Apple will clearly only put the iOS on the iPhone. Palm will only run its software on their phones (sense they make the hardware and software). All Sony has to do is to use current software from the likes of Google and Microsoft and make the best damn phone they can. They dont need to worry about the battle between MS, Google and Apple because they can be too busy making fantastic phones and if one platform goes to hell, they can continue to make phones for the other platform. Even better yet, Sony can make both Windows based phones and Android based phones. This way, it’s a win win.

[Via WSJ]