Sony Ericsson announced a break-even quarter to 30 September 2011, stating that it intends to shift its portfolio fully to smartphones during 2012. But the company did not comment on recent reports that Sony is looking to take control of the venture.

Bert Nordberg (pictured), president and CEO of the company, said that sales of its Android-powered Xperia smartphone line now account for more than 80 percent of sales, with the company having shifted 22 million units in this line to date. Total unit shipments during the quarter fell by 9 percent year-on-year, due to a drop-off in feature phone volumes which were only partially offset by smartphone growth.

For the period, the company reported a net income of “EUR0,” compared with a Q3 2010 profit of EUR49 million, on sales of EUR1.59 billion, down slightly from EUR1.6 billion a year ago. The results have improved from the earlier sequential quarter, when Sony Ericsson reported a net loss of EUR50 million, on sales of EUR1.19 billion.

It was reported last week that Sony was “nearing a deal” to buy-out Ericsson’s stake in the JV, with the intention to integrate the unit with its existing tablet and handheld units to synchronise the development of mobile devices. It would also enable the company to integrate mobile devices with its content propositions, to better compete with the packages offered by Apple and Google.

Sony Ericsson also noted an increase in average selling prices of 8 percent year-on-year, due to the shift toward smartphones and a change in geographic mix, despite a negative effect from foreign exchange rates.

The company estimates that its share of the global Android-based smartphone market during the quarter was approximately 12 percent in volume and 11 percent in value – indicating that it is making its mark in lower cost smartphones, which are often replacements for the feature phones which previously made up its volumes.

It has maintained its forecast for “modest industry growth” in total units in the handset market during 2011.