Sony Ericsson posted profits of 35 million euros ($47.14 million) in Q4 of 2010, due largely to major downsizing combined with a shift towards Android-based smartphones. Although Sony Ericsson sold fewer phones overall, Android enthusiasts will be happy to hear that they managed to sell over 9 million Android-based Xperia phones, including the X10, X10 Mini, X10 Pro, and X8, since their launch.
In the last year, Sony has made significant changes after reporting losses of 836 million euros in 2009 ($1.13 billion). A total of 4,000 employees were laid off and annual operating costs were reduced by over 880 million euros ($1.19 million). Chief Executive Bert Nordberg said in a statement that 2010 "was a turnaround year for Sony Ericsson".
As Android-based smartphones continue cannibalizing the sales of Sony Ericsson's remaining line-up, it is clear that to stay competitive Sony Ericsson will have to follow the market and start releasing better Android-based devices. Nordberg commented that "in 2011, [the] OS focus for [Sony Ericsson] is on Android" and that they intended to "continue to launch more different Android Phones". However, he pointed out that they had "not broken any relations with Microsoft".